I think NEO has seen its lowest low at 27,41$ on June 28. This point has marked the end of the long downtrend.
Since then NEO has entered a consolidation phase with a primarily sideways movement.
The fib retracement 0 - coming from the beginning of the rally in 2017 - serves as actual support. The price should not fall far beyond, otherwise the consolidation will be interrupted.
The trend channel is quite wide spreaded and on the upper side we see prices around 42$ going up to 46$ - a long way to go from today.
Also we see a short term falling trend line within the channel - and this line in combination with the lower limit of the trend channel are forming a descending triangle - with NEO in the peak of this wedge.
As I think that NEO won´t break the support (that´s what I hope) there is only one way left out of this triangle: up.
In this case NEO could rise up to the upper limit (~ 45$).
This theory is confirmed by RSI, which is in a positive trend as well and MACD, which has been triggered.
So, once NEO would have broken the triangle up this will open some good chances.
Since then NEO has entered a consolidation phase with a primarily sideways movement.
The fib retracement 0 - coming from the beginning of the rally in 2017 - serves as actual support. The price should not fall far beyond, otherwise the consolidation will be interrupted.
The trend channel is quite wide spreaded and on the upper side we see prices around 42$ going up to 46$ - a long way to go from today.
Also we see a short term falling trend line within the channel - and this line in combination with the lower limit of the trend channel are forming a descending triangle - with NEO in the peak of this wedge.
As I think that NEO won´t break the support (that´s what I hope) there is only one way left out of this triangle: up.
In this case NEO could rise up to the upper limit (~ 45$).
This theory is confirmed by RSI, which is in a positive trend as well and MACD, which has been triggered.
So, once NEO would have broken the triangle up this will open some good chances.
Trade closed: stop reached
Note
NEO has crossed the lower limit of the wedge to the bottom and is now sitting on the support, which is the fib retracement 0 (the beginning of the rally in 2017).So this should be the very deepest price for now - unless we´ll see lower lows than in the past weeks.
As NEO is too weak for new investments I ´ve considered to wait until it´ll have left the negative trend channel (red) and / or RSI climbing above the trend line.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.