We nailed it, guys! Our patience in NEO paid off. We bought the dip and took some profit ($36 - $38). So what now?
Given RSI and Stochastic are quite maxed out in the 4 hour chart, I believe we may see some sideways consolidation from here which would bring price down to somewhere around $35 (maybe even $33) before any sustainable upside movement can be expected.
What we want to see is a close above recent high of $38 that will open doors to an upside target of $41 to $44.
On the downside, a break below $33 will bring us down to $31.50 and if that does not hold, quite possibly a retest of former low around $30.31.
Below is a recap of our previous trade.
Forecast:
Actual (a week later):
Given RSI and Stochastic are quite maxed out in the 4 hour chart, I believe we may see some sideways consolidation from here which would bring price down to somewhere around $35 (maybe even $33) before any sustainable upside movement can be expected.
What we want to see is a close above recent high of $38 that will open doors to an upside target of $41 to $44.
On the downside, a break below $33 will bring us down to $31.50 and if that does not hold, quite possibly a retest of former low around $30.31.
Below is a recap of our previous trade.
Forecast:
Actual (a week later):
Comment:
Our upside target for NEO is approaching sooner than I had expected. Remember to take some profit. It is 2:34am here so I am done for the day. Good luck and happy trading!
Comment:
Good morning, traders. This much needed sharp consolidation is resetting NEO's momentum nicely. A recovery from this level will likely propel price to back to our original target range of $41 - $44, and quite possibly even $50 - $54. I would expect some sideways action before a long thrust upward.
On the downside, a break below the lower green line will likely pull us down to retest the former low around $30.
On the downside, a break below the lower green line will likely pull us down to retest the former low around $30.
Comment:
NEO has deviated from our original forecast. As I said before, this correction might bottom out at $33. But before we push that buy button, let us check the technicals for an updated second opinion.
In the 4-hour chart, Stochastic is officially in the oversold region with RSI following closely. MACD is moving down to zeroline. I find this deviation interesting because if it plays out the new scenario illustrated in the chart below, then NEO may seem like a good buy at current price level.
Having said that, trading by anticipation is a dangerous game so we will wait for price to play out the triangle that bottoms at $32.20 with a bounce that forms a higher low before opening any trade. Be patient, my fellow traders.
In the 4-hour chart, Stochastic is officially in the oversold region with RSI following closely. MACD is moving down to zeroline. I find this deviation interesting because if it plays out the new scenario illustrated in the chart below, then NEO may seem like a good buy at current price level.
Having said that, trading by anticipation is a dangerous game so we will wait for price to play out the triangle that bottoms at $32.20 with a bounce that forms a higher low before opening any trade. Be patient, my fellow traders.
Comment:
Good day, traders. Looks like we were right to let the trend play out the triangle which has held up price nicely within its borders. With recharged momentum, the bulls are now trying to form a higher low that would serve as a buy signal for those who wish to enter a long trade from this dip.
Comment:
We have liftoff, guys! NEO has fully completed the large triangle pattern and it is aiming to breakout from it.
Comment:
Good morning, traders! Bitcoin's recent rise has taken a toll on NEO. Now that price has breached the lower triangle, many long trades would have been stopped but we got in lower because we bought the dip. Even if price continues to drop to our entry level, we would still be able to exit without loss. When others see bad trend, we see opportunity. Our patience and persistence are being tested here but we know well enough that patience, persistence and perspiration make an unbeatable combination for success.
