Hello again friends,
Today I'd like to share with you my view on NEO. I will preface by saying I have a bullish bias towards NEO because I love the project, I love the model, I love the community they've built and I really think NEO is going to have a fantastic 2018. I feel the same for other smart contract coins as well, I think the use cases of these coins appeal to developers and are fantastic for investors alike.
With that said, let's take a look at the technicals. I am seeing an inverse Head and Shoulders (Green) with an upward sloping neckline on the 4h for NEO. Which conains within it a Cup and Handle (dotted black). We did have an Inv. H&S form in NEO back in early Feburary but it had a downward sloping neckline (sign of weakness) and as a result it did not reverse to its full potential. As a matter of fact it only played out to about half it's potential and was stopped by the Double Top at the .618 retrace of the ATH (fib retrace not shown). We just want to keep that in the back of our minds when looking at what to expect out of this one, NEO is a newer asset and the limited history is important.
I have highlighted in yellow the .50 fib retrace drawn from the Double Top to the head of the inverse H&S because we can see that it has acted as support turned resistance and is a significant level historically. I expect this level to be the biggest challenge the NEO Dollar pair faces moving forward and for this reason I don't expect it to break through that level at first go, but I do think after a test or two it will fail as resistance and once again become support allowing NEO to stair step higher.
I'm expecting NEO to be at $120 plus by end of June.
Like it if you like it, and comment your thoughts!
**This is my own educated opinion regarding my personal portfolio and should be used for education only. Please do your own research before trading yourself.**
Today I'd like to share with you my view on NEO. I will preface by saying I have a bullish bias towards NEO because I love the project, I love the model, I love the community they've built and I really think NEO is going to have a fantastic 2018. I feel the same for other smart contract coins as well, I think the use cases of these coins appeal to developers and are fantastic for investors alike.
With that said, let's take a look at the technicals. I am seeing an inverse Head and Shoulders (Green) with an upward sloping neckline on the 4h for NEO. Which conains within it a Cup and Handle (dotted black). We did have an Inv. H&S form in NEO back in early Feburary but it had a downward sloping neckline (sign of weakness) and as a result it did not reverse to its full potential. As a matter of fact it only played out to about half it's potential and was stopped by the Double Top at the .618 retrace of the ATH (fib retrace not shown). We just want to keep that in the back of our minds when looking at what to expect out of this one, NEO is a newer asset and the limited history is important.
I have highlighted in yellow the .50 fib retrace drawn from the Double Top to the head of the inverse H&S because we can see that it has acted as support turned resistance and is a significant level historically. I expect this level to be the biggest challenge the NEO Dollar pair faces moving forward and for this reason I don't expect it to break through that level at first go, but I do think after a test or two it will fail as resistance and once again become support allowing NEO to stair step higher.
I'm expecting NEO to be at $120 plus by end of June.
Like it if you like it, and comment your thoughts!
**This is my own educated opinion regarding my personal portfolio and should be used for education only. Please do your own research before trading yourself.**
Comment:
Just being precautions and open minded, I am seeing the formation of a Head and Shoulders Pattern forming with an upward sloping neckline. Meaning if it breaks below the upward sloping trend line then we could retest the handle bottom at the .236 retrace around $68 give or take $10. My bullish bias makes me think this H&S will fail but like I said, just giving an open minded perspective.
Just being precautions and open minded, I am seeing the formation of a Head and Shoulders Pattern forming with an upward sloping neckline. Meaning if it breaks below the upward sloping trend line then we could retest the handle bottom at the .236 retrace around $68 give or take $10. My bullish bias makes me think this H&S will fail but like I said, just giving an open minded perspective.
Comment:
A failure of the head and shoulders at the trend line like we thought. Look at how we bounced between the EMA's on the hourly and have now broken above the 25. Still Looking Bullish!
A failure of the head and shoulders at the trend line like we thought. Look at how we bounced between the EMA's on the hourly and have now broken above the 25. Still Looking Bullish!
Comment:
We called the play in ETH, and NEO is next. a close of this candle will confirm a big move up. NEO printed a Bull Flag at the end of the Symmetrical Triangle and breaking out will send it to test our resistance line for a second time. Lets watch to see if we break through.
We called the play in ETH, and NEO is next. a close of this candle will confirm a big move up. NEO printed a Bull Flag at the end of the Symmetrical Triangle and breaking out will send it to test our resistance line for a second time. Lets watch to see if we break through.
Comment:
After a retest of the Flag Top, we have broken though on the Hourly chart.
Looking at the .5 retrace for a second test of that resistance.
Looking at the .5 retrace for a second test of that resistance.
Comment:
So looking back, the last symerical triangle was not enough consolidation and it extended out further, I drew that last chart on the 1h this is a symetrical drawn on the 4h. This one is breaking out on the 4h and I think this will be when we retest the .5. I'm thinking we have a good chance to break through the .5 now after this longer consolidation, and by the fact that bitcoin is so close to 10k. All we can do is wait and see but things are looking great. It will also be bullish to see a test of the triangle before moving up. We shall see.
Comment:
One thing that is very interesting is how price action is/was pivotting the neckline of the Inverse H&S/Cup and Handle patterns. We are certainly on an upward biased trend.
Comment:
NEO Bounced perfectly off of the long term trend line and is headed up again, This is a great place to load up your bags before the next pump.
Comment:
This Idea has been invalidated. I guess NEO doesnt like these Inverse H&S afterall. That is exactly why I mentioned to take note of the previous one in my original analysis.
Like it if you like it, and comment if you have a question. I'm happy to answer!
***This is a reflection of my own educated opinion and should not be viewed as financial advise, please use this for educational purposes only.***
***This is a reflection of my own educated opinion and should not be viewed as financial advise, please use this for educational purposes only.***
Just like we expected, NEO tested and bounced off of the .5 retrace. We have since, dropped down with a harmonic ABCD and have bounced off of the 200 EMA on the Hourly. This is a nice bullish sign. I am watching bitcoin closely as it continues to form the handle of the Cup and Handle that is forming. When that breaks out we should really start this ride.