Greenou

Historical support close, obvious need for a reversal pattern

BINANCE:NEOUSDT   NEO / TetherUS
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.

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