EOSUSD closes higher for the 2nd day in a row
EOS/US Dollar Index (EOSUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, EOSUSD ended Saturday at 3.23 surging $0.45 (16.19%) on high volume. This is the biggest single-day gain in over three months. Today's close at 3.23 marks the highest recorded closing price since September 1st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 2.83, the cryptocurrency confirmed its breakout through the previous session high after trading up to $0.42 above it intraday.
Daily Candlestick Chart (EOSUSD as at Nov 21, 2020):
Saturday's trading range has been $0.55 (19.78%), that's far above the last trading month's daily average range of $0.15. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for EOSUSD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 3.22 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, EOSUSD actually lost -2.94% on the following trading day.
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 2.57.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for EOS/USD. Out of 20 times, EOSUSD closed higher 65.00% 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 65.00% with an average market move of 15.65%.