What's up world!? Congratulations to my Twitter followers, who clinched a first place victory, by voting for NEO during this week's #coinvote! So, without further ado, let's jump right in to the chart! Looking at the four hour chart for NEO, you can see that it has been in a sustained downtrend, since the high that was formed on 2/27. A large bear flag was formed, over the past week, and now price is breaking to the downside. You can see that there was a bearish crossover on the MACD, but the volume is very suppressed. Regardless, NEO is in freefall at the moment. The bear flag projection (for a correction equal to 100% of it's potential) is around the 78.6% retrace. However, it looks like NEO will test the low of 2/6 sometime in the near future. The question is, do we double bottom there? If so, perhaps this large bear flag will not reach it's full downside potential.
With that said, if you're a NEO fan, and you want to trade this thing short term, here is how Magic would handle trade it. I would watch closely to see if NEO double bottoms on the 63.62 level. Remember, a technical double bottom doesn't have to be on that exact level. It just has to be within a few percent of the 2/6 low. What you want to do, is look for a reversal candle. Like a hammer that forms, in conjunction with a bullish crossover on the MACD. Preferably, that would be right off of the 63.62 level. I would place a stop order just below the 63.62 level, and go long on a bounce off of the double bottom support. That way, your downside risk is minimal, and you have an opportunity to make an attempt at catching the bottom.
However, on the upside, NEO will have to contend with a lot of overhead resistance. You can see that the falling pink trendline has been very resistive since the high, as well as the 20 EMA (in blue.) For now, let's watch to see if NEO, and the rest of the crypto space, forms a double bottom off of the 2/6 lows. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
With that said, if you're a NEO fan, and you want to trade this thing short term, here is how Magic would handle trade it. I would watch closely to see if NEO double bottoms on the 63.62 level. Remember, a technical double bottom doesn't have to be on that exact level. It just has to be within a few percent of the 2/6 low. What you want to do, is look for a reversal candle. Like a hammer that forms, in conjunction with a bullish crossover on the MACD. Preferably, that would be right off of the 63.62 level. I would place a stop order just below the 63.62 level, and go long on a bounce off of the double bottom support. That way, your downside risk is minimal, and you have an opportunity to make an attempt at catching the bottom.
However, on the upside, NEO will have to contend with a lot of overhead resistance. You can see that the falling pink trendline has been very resistive since the high, as well as the 20 EMA (in blue.) For now, let's watch to see if NEO, and the rest of the crypto space, forms a double bottom off of the 2/6 lows. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-