Since the analysis below EOS has moved sideways and down a little to support at $5.20 where it has stubbornly stayed for several weeks. Price moved up significantly last week (14%) in what is hopefully the start of Wave 3. Price remains in an uptrend but were price to fall back below $5.04 that would confirm a technical weekly downtrend and would be a major concern. Price remains above an uptrend line but needs to make higher troughs followed by higher peaks to confirm the likelihood of higher prices. A close above resistance at $6.28 would be another positive for price recovery and a close above $7.35 would suggest a target of $9.50. Price has made a pennant pattern bounded by blue dashed line and black uptrend line and while that pattern is 'untidy' if correctly placed, price broke above the pattern last week - suggesting higher prices ahead. Price fell back a little on Friday to retest the upper boundary of said pattern, and next week should determine if price is going higher or falls back to the uptrend support (hopefully no lower).

EDIT 12 Oct - New sort-term target of $7.95 if prices closes above resistance at $6.49 and the pennant break has a target of $9.26 - which is close to my earlier target.

EDIT 14 Oct - Price reversed sharply yesterday after hitting overhead resistamce at $6.10 - so I'm not surprised to see a bit of a dip. How far will it go? Price has fallen back to that pennant boundary which could act as support and hence push price higher. If it goes lower then somewhere around $5.40 is likely. 

EOS 9Oct2020

21 August 2020

Since the Covid fall into March price has risen steadily making an uptrend and were price to move above $6.45 that would be a higher high and a potential buy signal. EOS has been trading in a rising price channel and could be expected to return to the top boundary of that channel – possibly around $8.60 for a potential profit of 45% on today’s price. No timing on how long that rise might take and I’d expect a few ups and downs along the way.

EOS 21Aug2020

10 July 2020

Sold EOS this week (6 July) for a 12.4% profit. 50% of my holding was purchased on 3 June for $6.06 and the balance for $6.37 on 4 June. Price made a break above resistance on 3 June making a target of $8.17. Price subsequently reversed and fell significantly. I expected price to rise and stayed in the trade, however, it rose from $5.30 only to quickly turn down again. In reality I should have sold at $5.30 when price fell through that level but felt the stock would turn close to $5.00 and decided to hold on. I should say this was a judgement decision that was in breach of my trading rules and not something novice traders should attempt. Had I sold I probably wouldn’t have been able to get back into the trade because price gapped up strongly 2 days in a row but by already holding I got all the rebound and sold at the top (it doesn’t happen often).

Click here - to see my video explaining how this trade didn't go to plan.

EOS 10Jul

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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