EIGEN Technical Outlook
Looking at the EIGEN chart, we can see a clear contracting triangle pattern, and the price is nearing the end of it. We should be alert about a possible breakout.The level at $1.22, where both the formation's support and horizontal support areas intersect, is the lower border of the triangle formation; therefore, this level is a key area, and if the price finds a buyer after testing this area, the possibility of an upward breakout increases.According to the triangle formation, the upper resistance is around the level at $1.60, which, if broken, could propel the price as long as the triangle’s height. In this case, medium-term price targets for EIGEN could be the levels at $1.80 and $2.50.The price levels at $1.09 and $0.96 should be followed as support areas in case of a pullback.
- Summary:• Price: $1.298, trading within a contracting triangle formation.• Triangle bottom support: $1.22• Triangle top resistance: $1.60• Targets for an upward breakout: $1.80 → $2.53• Support for a downward breakout: $1.09 → $0.969
In triangle structures, the direction of the breakout typically results in a strong move. Therefore, the direction of the breakout from the formation should be carefully monitored.
These analyses, not offering any kind of investment advice, focus on support and resistance levels considered to offer trading opportunities in the short and medium term according to the market conditions. However, traders are responsible for their own actions and risk management. Moreover, it is highly recommended to use stop loss (SL) during trades.
