EOS has seen a great bull run so far, rising 550% from March 18th, and there may be an opportunity to go long again in the coming days, with a potential buy zone between the 50 and 618 Fibonacci retracement lines ($14.10 to $12.05). But first, let's take a look at the big picture to remind ourselves where we are in the market cycle.
The target for Primary Wave 3 is a 1.618 extension of Primary Wave 1, projected from Primary Wave 2... which is not even on the screen with this price territory; it's around the $35 mark.
That leads to us counting the impulse we've had recently as Intermediate Wave 1 (that is, the first wave of Primary Wave 3) - shown in white. This can then be broken down into our Primary Wave count - shown in red. This is the area we're interested in. Moreover, even if Minor Wave 5 is actually in, due to the relatively small distance between the origin of the impulse and Minor Wave 2, much of our buy zone overlaps.
A buy zone of $14.10 down to $11.45, compared to a buy zone of $13.50 to $10.50 if Wave 5 is in.
Digging in on the recent correction, we have a clear triangle forming, which has both a bull and bear scenario... the bull scenario would be that we've completed Minor Wave 4 and are set to march to new heights but I'm more focused on the bear scenario as it's what presents the best opportunity to long at a lower cost.
Shown here is a 3 wave structure for Minute A (Minute A being in orange, and the 3 wave structure being in pink). Fib relations for this line up well, too; (c) is 0.618 times the length of (a), which is a common relationship to find in an ABC.
Next, there is the triangular structure with each of the abcde subdividing into a 3 (though not shown on the graph). The triangle traded incredibly technically... this just shows the power of Fibonacci:
Now, one thing that helps to narrow down the buying window is that the length of the movement after the completed (e) is often equal to the length of the preceding (a). This is Elliott speak for saying the break of a triangle is often the same magnitude as the base of the triangle, shown by the red line.
In addition, a 100% projection of the length of the swing high [V] to the [a] point from (a) lands almost square on the 0.618 retracement level of the entire upward movement.
The final piece of confluence is that taking the Fibonacci retracement from swing high to swing low - [V] to [a] - has the -0.236 level square on the 0.5 of the entire upward movement and the -0.618 is exactly on top of the 0.65.
Zooming back out, the target if this is the 4th is the -0.236 of the larger movement. Trading from the 0.5 retracement gives 90% profit, whilst the 0.618 could yield 120% returns.
Oh, and one last thing... the 5th wave could extend, a 5th wave extension in the 3rd wave is rather common in crypto. That could bring us to the $33 target! https://www.tradingview.com/x/GaFDK5M4/
Thank you all for reading!
Disclaimer: I'm not a financial advisor.