Hello. In my technical analysis, Ellipsis(EPS) is a potential breakout token. I'll show you why.
What makes this a potential breakout cryptocurrency?
1. EPS has been in a triangle pattern from September until now, in which price hasn't broke out of yet.
2. RSI divergence in Late September
3. RSI approaching 70. While this sounds bearish at first, RSI can sometimes go above 70 when breaking out.
4. RSI hovering above 50. Will be confirmed if RSI cannot surpass below 50.
5. Price resting near support of price channel(sky blue dotted lines)
6. Good volume on rallies up to red dashed line. Bulls are getting stronger per "mini-rally", as evident in the chart(marked by orange arrows).
EPS should have some criteria for a breakout to take place. These are mine:
1. Triangle Pattern Breakout
2. EMA100 Breakout
3. Good volume on breakout
4. RSI pattern Breakout(green dashed lines)
My prediction is that if the breakout criteria is fulfilled, we may have a move to at least the upper part of the channel and the 1.618 Fib, which is a 130% move from the red dashed line. It may even break the channel and reach the 2.618 Fib.
Let's see how EPS plays out. I will be updating this post once in a while.
Thank you for reading! Give constructive feedback in the comments, would help me improve.
And remember, don't take this as advice for your trading. Do your own research first.
What makes this a potential breakout cryptocurrency?
1. EPS has been in a triangle pattern from September until now, in which price hasn't broke out of yet.
2. RSI divergence in Late September
3. RSI approaching 70. While this sounds bearish at first, RSI can sometimes go above 70 when breaking out.
4. RSI hovering above 50. Will be confirmed if RSI cannot surpass below 50.
5. Price resting near support of price channel(sky blue dotted lines)
6. Good volume on rallies up to red dashed line. Bulls are getting stronger per "mini-rally", as evident in the chart(marked by orange arrows).
EPS should have some criteria for a breakout to take place. These are mine:
1. Triangle Pattern Breakout
2. EMA100 Breakout
3. Good volume on breakout
4. RSI pattern Breakout(green dashed lines)
My prediction is that if the breakout criteria is fulfilled, we may have a move to at least the upper part of the channel and the 1.618 Fib, which is a 130% move from the red dashed line. It may even break the channel and reach the 2.618 Fib.
Let's see how EPS plays out. I will be updating this post once in a while.
Thank you for reading! Give constructive feedback in the comments, would help me improve.
And remember, don't take this as advice for your trading. Do your own research first.
Comment:
EPS may be breaking down the lower channel support here.
