Historical support close, obvious need for a reversal pattern
For sure, NEO is having some rough time, riding the bottom of its descending wedge for the past 10 days and hard dropping for the past month.
NEO/USDT chart is getting close to his historical support of 43$, expected cross in between 2 to 5 days.
I wouldn't be surprised for it to hold, but what we really need to see is a reversal pattern: a hammer candlestick, an increased volume, RSI going higher, or anything. Do not rely on the EMA or any lagging indicators as the dropped was too important for them to be effective now.
Listing possibilities, NEO/USDT could:
* Bounce towards the 70$ zone (0.236 fib retracement + top of the descending wedge)
* Drop further (no clue what would be the next target, danger)
* Trade in the 40-45$ zone for the next weeks
For those who are looking for recommendations, that is the way I see it:
1. Wait for the chart to reach the KEY zone: 43$
2a. If there is a reversal pattern on the daily chart (and not 12H, 4H or even less), then entry with a tight stop loss, for instance 38.5$
2b. No reversal pattern, meaning dropping further or ranging between 40-45: don't trade NEO and wait for the market to decide if we shall go upwards or downwards
I will update the Idea in the following days to match my recommendations. Please comment or upvote if you do agree with my way of seeing things :)
Best regards,
Greenou.
NEO/USDT chart is getting close to his historical support of 43$, expected cross in between 2 to 5 days.
I wouldn't be surprised for it to hold, but what we really need to see is a reversal pattern: a hammer candlestick, an increased volume, RSI going higher, or anything. Do not rely on the EMA or any lagging indicators as the dropped was too important for them to be effective now.
Listing possibilities, NEO/USDT could:
* Bounce towards the 70$ zone (0.236 fib retracement + top of the descending wedge)
* Drop further (no clue what would be the next target, danger)
* Trade in the 40-45$ zone for the next weeks
For those who are looking for recommendations, that is the way I see it:
1. Wait for the chart to reach the KEY zone: 43$
2a. If there is a reversal pattern on the daily chart (and not 12H, 4H or even less), then entry with a tight stop loss, for instance 38.5$
2b. No reversal pattern, meaning dropping further or ranging between 40-45: don't trade NEO and wait for the market to decide if we shall go upwards or downwards
I will update the Idea in the following days to match my recommendations. Please comment or upvote if you do agree with my way of seeing things :)
Best regards,
Greenou.