Over the last month, we have had success with one simple rule: Don't chase altcoins when they rally.
That thinking has worked like a charm in smaller altcoins. That said, looking at the EOS chart, it may be time to start buying small dips and go with the recent rally. Reason: The EOS two-day chart shows a bounce off a stable support zone. It looks a lot like the Ethereum (ETH) chart.
EOS also has a strong stochastics picture. Stochastics are a measure of market momentum. Recently, EOS dropped a lot. When EOS dropped and made a new low for the short term down move, stochastics did not make a new low. If anything, they made a higher lower. In addition to that, stochastics are crossing upward from oversold levels. This type of picture is called bullish stochastics divergence. In the past, bullish divergence on a two-day chart has sometimes led to massive rallies.
Bottom Line: It may be time to buy the next small dip in EOS. If it works out to be a good trade, a bottom may be in place.
That thinking has worked like a charm in smaller altcoins. That said, looking at the EOS chart, it may be time to start buying small dips and go with the recent rally. Reason: The EOS two-day chart shows a bounce off a stable support zone. It looks a lot like the Ethereum (ETH) chart.
EOS also has a strong stochastics picture. Stochastics are a measure of market momentum. Recently, EOS dropped a lot. When EOS dropped and made a new low for the short term down move, stochastics did not make a new low. If anything, they made a higher lower. In addition to that, stochastics are crossing upward from oversold levels. This type of picture is called bullish stochastics divergence. In the past, bullish divergence on a two-day chart has sometimes led to massive rallies.
Bottom Line: It may be time to buy the next small dip in EOS. If it works out to be a good trade, a bottom may be in place.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.