NEO wants to pullback before major upside break

NEOUSD

After a deep selloff NEO found a temporary bottom around 14 and managed to get upto 21. Eventhough it managed to close above 9 ema in daily not able to close above 14 EMA. 4H chart suggest a breakdown (RSI teasing a breakdown) after stiff resistance from price level 21 and 4H 100 MA, neo awaits a pullback towards 17 to 18 zone.

Falling channel floor is still holding. Hence a break above 21 (current high) and 14 EMA on daily chart would push price higher towards 27 ( previous low + breakdown started price ).

Wait for price to pullback towards 17 to 18 zone. check 4H 50 MA holds one more time. The current high of 21 would be put to test again and probability for upside break would be higher if 4H 50 MA holds.

Also worth noting that weekly chart closed with a bullish doji (reversal sign). Gains could be made in upcoming week but monthly chart is still bearish, so book profits once targets hit for a retest of current low (13.68).

Note : This is medium risk trade with higher gains. If the price is not able to break 21 again means neo would surely revisit 13.68 and if that support breaks down expect a much worse case as next supports are seen around 10 and 5.8 respectively.

Comment:

make sure to set stop loss 16.8 if market goes against you.