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

EOS still remains within the wedge I pointed out yesterday. It's price is being squeezed tighter and tighter. This corrective pattern followed 5 waves up. Technically we'd expect another impulse wave up after completing the correction. Unfortunately, it's not that simple at the moment. There's no clear way to count this corrective pattern. This could indicate a trend reversal, or simply market uncertainty. The price is being squeezed together with lower highs and higher lows. One thing is clear...it can't continue this way much longer. As it approaches the apex, a breakout up or down becomes very likely. 

I realize this is not the kind of analysis people want to hear. You want to know if it's going up or down. While no one can ever say for certain, technical analysis usually gives us indications in one direction or another. We can then trade on these based on probability and risk assessment. Unfortunately, there's many mixed signals in the current market. This tells me the best thing to do is wait to enter a position until we have more clarity. Obviously, this is just my opinion. Everyone must make their own decisions. 

Should EOS break up, a bullish scenario may play out like this:

![Screen Shot 2018-05-10 at 6.23.53 PM.png](https://steemitimages.com/DQmXpLtex3rDn1SvT4ePSiNBsQJVSnEm7gxi8BWEcsNd8G7/Screen%20Shot%202018-05-10%20at%206.23.53%20PM.png)

We can't ignore the weakening volume. There's also what appears to be a bearish pennant that's formed. This could indicate a drop is coming. 

![Screen Shot 2018-03-18 at 9.55.44 AM.jpg](https://steemitimages.com/DQmNvVgbahu8G1prCbHdSRuLcTKYVCC5NTxtbfANhB8Grvb/Screen%20Shot%202018-03-18%20at%209.55.44%20AM.jpg)

![Screen Shot 2018-05-10 at 6.30.33 PM.png](https://steemitimages.com/DQmZKX8Dwz2ScahsAH5taWW5Hy6z2Fo7BGMbt7iA5BK2YyY/Screen%20Shot%202018-05-10%20at%206.30.33%20PM.png)

Should EOS break down, there's strong support between $15.30 and $14.50. I'd expect it to drop to that level and again consolidate before resuming its uptrend. If you look at the order books on Binance and Bitfinex, should EOS drop below $16.00, there are a lot of buyers ready to catch and support it. If this bearish scenario happens, it may play out like this:

![Screen Shot 2018-05-10 at 7.10.03 PM.png](https://steemitimages.com/DQmfA8E4xBmSLH2Fy4Qymc2R3SKWW3CoxTWFvgxw4Qq4Bvi/Screen%20Shot%202018-05-10%20at%207.10.03%20PM.png)

Looking at the 4 hour RSI, we can see a strong ascending support line. 

![Screen Shot 2018-05-10 at 6.32.54 PM.png](https://steemitimages.com/DQmaEWmMVFzs9cKw2Ynf9TxZnqBvA9bTSfanjoJr4uniENb/Screen%20Shot%202018-05-10%20at%206.32.54%20PM.png)

If we zoom in closer to the 1 hour RSI, we can see support at 29.9. This support must hold for the bullish scenario to play out. If it breaks, expect the bearish scenario to follow. 

![Screen Shot 2018-05-10 at 6.36.28 PM.png](https://steemitimages.com/DQmXFYQyzuRuKn1KLhZVAv7eRUFiqEnVaM4SzbDPRHrFVQc/Screen%20Shot%202018-05-10%20at%206.36.28%20PM.png)

Looking at the 1 hour MACD, we can see the histogram is being squeezed. This also suggests a breakout is coming soon. 

![Screen Shot 2018-05-10 at 6.40.43 PM.png](https://steemitimages.com/DQmU68bXKWc2zpDF73PvLwhYA2Q6pKJLbbaBKANNHVe9LF5/Screen%20Shot%202018-05-10%20at%206.40.43%20PM.png)

The 4 hour MACD also reveals the histogram remaining within a wedge. 

![Screen Shot 2018-05-10 at 6.42.44 PM.png](https://steemitimages.com/DQmbtSRzVjwSV8cKFPsQcwFacJkcXXv7WHuLPunLRiKt5SC/Screen%20Shot%202018-05-10%20at%206.42.44%20PM.png)

Let's keep an eye on the above indicators. Until we have more clarity, it may be best to just sit on the sidelines and watch...but as I said earlier, each to their own.

**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. I wish you great success!**

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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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