EOSUSD closes above its opening price after recovering from early selling pressure
EOS/US Dollar Index (EOSUSD) Technical Analysis Report for Feb 10, 2019 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, EOSUSD ended Sunday at 2.84 gaining $0.03 (1.07%). Today's close at 2.84 marks the highest recorded closing price since January 9th. Trading up to $0.12 lower after the open, EOS managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (EOSUSD as at Feb 10, 2019):
Sunday's trading range has been $0.15 (5.34%), that's slightly above the last trading month's daily average range of $0.14. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for EOSUSD.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Closing Marubozu showed up on December 13, 2017, EOSUSD gained 12.64% on the following trading day.
Prices are trading close to the key technical resistance level at 2.86 (R1). After having been unable to move lower than 2.71 in the previous session, the cryptocurrency found buyers again around the same price level today at 2.69.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 2.46.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might accelerate should prices move above the nearby swing high at 2.87 where further buy stops could get triggered. With prices trading close to this year's high at 3.05, upside momentum might speed up should EOS/USD be able to break out to new highs for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Closing Marubozu" stand out. Its common bullish interpretation has been confirmed for EOS/USD. Out of 2 times, EOSUSD closed higher 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 100.00% with an average market move of 22.76%.
With four out of the other six Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are LTCUSD gaining 5.94% and ETHUSD closing 5.17% higher. On the flipside the worst performers have been XRPUSD closing -0.51% lower and BCHUSD losing -0.41%. Looking at the Minor Cryptocurrencies, the winners of the day have been HSRBTC surging 9.24% and LTCGBP closing 6.51% higher. The worst performers of the day have been BCNUSD tanking -4.57% and TRXBTC closing -1.95% lower. Read more