EOS has had an epic 2 weeks. Today is no different. It looks like it has almost completed it's 3rd wave, which means a correction is very possible before the next wave up. Looking at the Fibonacci retracement, I've set the wave 4 correction to the 0.236 fib level (about $10.74).
I've set the 0.236 fib level as the correction target for 2 reasons:
First, wave 2 retraced to almost the 0.618 fib level. That's a fairly deep retracement. Elliot wave theory states that if wave 2 retraces deep, wave 4 is often shallow. This would make the 0.236, or 0.382, fib level logical correction targets.
The second reason is the extreme bullish nature EOS has shown over the last week. This leads me to believe the 0.236 fib level is more likely than 0.382.
Looking at the 1 hour RSI, we can see it's fairly overbought. It's also overbought on all time frames.
Please forgive the typo in the chart below. It should read "overbought". Thanks to eaglet for catching my mistake.
The MACD histogram is looking extremely stretched. This could indicate a correction is looming.
I believe once the correction is complete, EOS will have another explosive impulse wave up. As their ICO comes to an end and the main-net is preparing to launch, investors are flooding in. I don't expect that to stop any time soon.
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