![eos-logo-2.jpg](https://steemitimages.com/DQmZ42gX4duXUyxWTswoxcJej2fcTUe29xfWVGeTxDCaiAn/eos-logo-2.jpg)

I'm going to focus on the big picture today. A wide look at the 4 hour chart reveals a bull flag. 

![Screen Shot 2018-05-17 at 12.53.11 PM.png](https://steemitimages.com/DQmSoEjZZZ37aBHCVTf3TU18vkPwqpftUTBDPeQsgqi9Sms/Screen%20Shot%202018-05-17%20at%2012.53.11%20PM.png)

EOS bounced off the 0.618 fib level, gained some short lived momentum, and now seems to be dropping. I believe it will drop back down between the 0.168 and 0.65 fib levels. As I explained yesterday, this is known as the "golden pocket". This would be a logical spot to expect an impulse wave up. 

![Screen Shot 2018-05-17 at 1.24.01 PM.png](https://steemitimages.com/DQmUxfFAAuj1pErHhhNQu4QbNTxMSyBEc9H1jsYtuJsasyd/Screen%20Shot%202018-05-17%20at%201.24.01%20PM.png)

The 4 hour RSI is moving up within a rising wedge. A breakout above this wedge could indicate an impulse wave. A break below this wedge could indicate a drop below the golden pocket I discussed. If this happens, bitcoin may drop to the 0.786 fib level.

![Screen Shot 2018-05-17 at 8.41.07 PM.png](https://steemitimages.com/DQmTK4FnW8816muTSMgcXw2XTGni83vK5GSBw4TB1qt5jYd/Screen%20Shot%202018-05-17%20at%208.41.07%20PM.png)

Looking at the 1 day chart, EOS is has found support on the 55 day EMA. So far, the daily candle is looking bearish. It's got a long wick on top signifying it tried to breakout, but the bears were too strong...pushing it right back down. If the candle closes this way, it could signify a drop to come. Let's see how it closes today.

![Screen Shot 2018-05-17 at 3.49.41 PM.png](https://steemitimages.com/DQmdFRwdWYZx5qHJJTGKFCTphjspGuZxkMk2B5RgcJHFsjc/Screen%20Shot%202018-05-17%20at%203.49.41%20PM.png)

Looking at the 4 hour MACD, it's starting to move mostly sideways in a consolidation pattern. 

![Screen Shot 2018-05-17 at 3.13.24 PM.png](https://steemitimages.com/DQmQ8V1nR6ZCvH7mAdkkemZLB5Q9D2cd7FTXoCAqd8uAYAn/Screen%20Shot%202018-05-17%20at%203.13.24%20PM.png)

There's a support zone between $11.65 and $10.85. We may consolidate further before making any major moves. Keep an eye of the RSI channel I pointed out above. Until EOS breaks above or below that channel, we will most likely see sideways movement that may look like this:

![Screen Shot 2018-05-17 at 3.55.34 PM.png](https://steemitimages.com/DQmPRkAqooXUxzCpkHHYfsv4bhdpy29JqdF2GVZN7N19sh9/Screen%20Shot%202018-05-17%20at%203.55.34%20PM.png)

I pointed out yesterday that there's bullish divergence on the 4 hour RSI (If you're unfamiliar, that's when the price declines as the RSI rises). 
This is a sign a trend reversal may be coming soon. 

![Screen Shot 2018-05-17 at 4.29.50 PM.png](https://steemitimages.com/DQmZFT2UztKbsJe9cABH1tBJeuftZVwKREjkCS7DfWydf1r/Screen%20Shot%202018-05-17%20at%204.29.50%20PM.png)

As stated earlier, the 0.618 fib level is a prime place to expect a breakout. Should that happen, it may look like this:

![Screen Shot 2018-05-17 at 2.13.59 PM.png](https://steemitimages.com/DQmdtdRoXMNWv7XcjKkAvB6ppqp5j3hPvNzX2a41wPtk7Dx/Screen%20Shot%202018-05-17%20at%202.13.59%20PM.png)

If it breaks below the orange support zone, I'll have to re-evaluate my analysis. Right now EOS is still tied to bitcoin. If it drops, EOS will most likely drop. If not, from a technical point of view, EOS could breakout in the very near future. 

**BIAS:**

Short Term: Neutral
Longterm: Bullish

**I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Thanks for stopping by.**

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*Disclaimer: I am NOT a financial advisor and this is NOT financial advice. Please always do your own research and invest responsibly.* 

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