Triangle on EOSUSD Points Lower
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Oct 29 2018
Not only EOS, the whole Crypto market looks slow and corrective within still ongoing bearish trend! Honestly, we don't see any bullish evidences and if we listen to the price action and if we respect correlations, then we should be aware of more weakness in the Crypto market.
So, looking at EOS 4-hour chart, we can see a five-wave sideways movement a-b-c-d-e with three legs in each wave which can be forming a triangle pattern. In EW theory, a triangle is a corrective pattern that indicates a continuation of the trend. That said, seems like EOS can be headed lower while it's trading beneath 6.1 region, but keep in mind that this triangle may become even more complex, so invalidation area remains at 6.8 level. However, to confirm a completed bearish triangle pattern, we need a break below 5.0 region that can open door for new lows even towards 3.5 area!
Also, keep in mind that this can be the final leg into new lows before a bullish reversal, which means that downside can be limited, so watch out for spikes as well!
Only an impulsive rally back above 7-8 area would indicate a bullish reversal, until then we have to remain in bearish mode!
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