EOS has been (and remains in) a downtrend since December last year. Price has been making a channel as it fell and the lower boundary of that channel currently coincides with a line of support (the blue dashed line) that price has held above since 2016 - so it is probable price will bounce up of this level (remembering that it doesn't have to, of course!). If price does rise back to the top of the shaded price channel and continues tp break up out of said channel then price could be moving up on Elliott Wave 3 which is the longest and strongest rising wave in a stock's price cycle.

EOS 21May21

5 February 2021

EOS disappointed and fell to break both its uptrend and make a lower low. With last weeks low being the lowest since June EOS could be going lower yet. The decline since July fits with Elliott Wave theory that the current retracement is Wave 2 - which often loses 75% of the gains in Wave 1. This suggests price could head for $4 - which is also a level of support.  That said, prices rose this week from what could be the bottom boundary of a price channel (shaded). If correct then price could be expected to recover strongly. Competing outlooks here so any trade before a new uptrend is confirmed could be high risk. I closed out my own trade (for a loss) when it became apparent lower prices were coming.

EOS 5Feb2021

20 November 2020

I have revised my analysis below over the intervening month. As per my closing sentence below, price did fall back to the trendline support before rising back to last week close above resistance at $6.48. EOS' price action has not unfolded in an easy to read pattern but it is continuing with the uptrend and I'll persist while that is happening. There is the potential for a target of $7.90 but the pattern that is based in is far from perfect. Should price get to $7.90 then that may be the time to close out this trade.

EOS 20Nov2020

14 October 2020

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).

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


Robert Norman

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

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