EOH Holdings Ltd
The price of EOH Holdings has broken out of a symmetrical triangle formation with technical indicators Bollinger bands and volume validating the breakout. Bollinger bands expand on an increase in price volatility and a price close above the upper Bollinger (while expanding) is often used as a confirmation of a breakout.
This technique is said should help in distinguishing when the price is committing to a directional bias rather than expanding the range bound trading environment. High volume on a price breakout alludes to the sustainability in the directional move and is circled red on the EOH price chart. Furthermore the breakout is in-line with the long-term trend as gauged by the price in relation to 200 day simple moving average, favouring traders with a trend following bias.
The price is now experiencing its first pullback since the initial breakout, which affords technical breakout traders of these types of patterns, a second opportunity for long entry. The height of the triangle consolidation projected from the breakout level (11475) arrives at an upside target of 12775. A price close below support at 11240 would consider the failure of the bullish indications.