On the daily chart of NEO you see that the sellers are losing control. You see 2 bullish engulfing pattern and a decent hammer pattern. Also we see that the price is in the area of buyers (Supply). Now the question is will the buyers take over control and push the price through that downtrend?
Now on the 4 hour chart we see an inverse head & shoulder forming. If this pattern is completed and the price break above the neckline then it will tell us that there is going to be a trend reversal. Again the pattern is not completed, so we need to be patience.
If we are going to open a long position after the inverse head & shoulders, we need to be careful, because the price is close at the downtrend. If you want to play safe you could invest 25% - 50% of your trade when a candlestick closes above the neckline.
We can’t act on it now, but we can make a trading plan and wait out.
Long position (4-hour)
- Entry: I plan to go long when a candlestick closes above the neckline
- Stop Loss: A close below the neckline or uptrend (Depends if an uptrend is forming in the future)
- Target: See the blue areas, but we have to take a close look what is going to happen when the price is closes to the downtrend.
Short position (4-hour)
- Entry: I plan to go short if I see bearish candlestick patterns at the downtrend
- Stop loss: the downtrend
- Target: The bottom of the right head & shoulder (I will update the target when the short position is active)
ALWAYS keep in mind! That this is NOT an investment advice, but an analyse . You can do whatever you want with this information, so trade at your own risks!
Now on the 4 hour chart we see an inverse head & shoulder forming. If this pattern is completed and the price break above the neckline then it will tell us that there is going to be a trend reversal. Again the pattern is not completed, so we need to be patience.
If we are going to open a long position after the inverse head & shoulders, we need to be careful, because the price is close at the downtrend. If you want to play safe you could invest 25% - 50% of your trade when a candlestick closes above the neckline.
We can’t act on it now, but we can make a trading plan and wait out.
Long position (4-hour)
- Entry: I plan to go long when a candlestick closes above the neckline
- Stop Loss: A close below the neckline or uptrend (Depends if an uptrend is forming in the future)
- Target: See the blue areas, but we have to take a close look what is going to happen when the price is closes to the downtrend.
Short position (4-hour)
- Entry: I plan to go short if I see bearish candlestick patterns at the downtrend
- Stop loss: the downtrend
- Target: The bottom of the right head & shoulder (I will update the target when the short position is active)
ALWAYS keep in mind! That this is NOT an investment advice, but an analyse . You can do whatever you want with this information, so trade at your own risks!