Neo - Important Support for Buyers

The price reached the main support zone where the market will be able to give us a good buy opportunity or break the bullish structure. This zone is formed by the main uptrend line, SMA100 and 9.00 support level. DMI is bearish and supports the strength of sellers. MACD lines give a bearish signal too, but the histogram is going to confirm the price reversal. RSI is still bearish and it does not reach the oversold zone. It means the market still can move lower or continue a sideways movement at the support zone.

Based on the signals from indicators which show the strength of sellers and possible downward movement, for buying, it will be better to wait for the price reversal and the breakout above 10.00 resistance level and the local downtrend line. If we get the breakout above this resistance zone, it will give us an additional signal confirming the further upward movement. It will also show the strength of buyers and the continuation of the main uptrend.

If the price breaks below the support zone and drops below the main uptrend line, the bullish structure will be broken. The market will be able to drop to the previous support zones and even reach the bottom one more time.