NEO bearish but currently testing supports, beware of breakout
Dear trading friends,
We have currently a few indicators that are pointing towards a bearish market.
Indeed, the EMA20 is about to cross the EMA50, and both are above the current trading prices, which is a bearish sign.
Even though the triangle breakout was bullish, the market did not move according to our expectations, got hurt by the $140 resistance, and is now short term bearish.
The RSI is relatively low but not low enough to be a real bullish tool.
What will happen in the next 2 days is very important.
Indeed, the past few days volume was quite low which gives little importance to the current and past few days trading price.
It can be noted, however, that large candles are forming, alternating between green and red, and that green have higher volume than red:
We are currently at a choke point.
NEO is currently testing many supports (EMA200, ex-resistance of the broken triangle) that are for now, well... supporting.
If NEO goes under both and reaches $118 before March 05, we are likely to fall to the next support line which would be around $111.
However, if supports hold and volume increases, that would put the NEO market bullish and we might actually retest the $140 resistance soon.
Please, feel free to comment and give insights regarding your way of seeing the NEO market :)
We have currently a few indicators that are pointing towards a bearish market.
Indeed, the EMA20 is about to cross the EMA50, and both are above the current trading prices, which is a bearish sign.
Even though the triangle breakout was bullish, the market did not move according to our expectations, got hurt by the $140 resistance, and is now short term bearish.
The RSI is relatively low but not low enough to be a real bullish tool.
What will happen in the next 2 days is very important.
Indeed, the past few days volume was quite low which gives little importance to the current and past few days trading price.
It can be noted, however, that large candles are forming, alternating between green and red, and that green have higher volume than red:
We are currently at a choke point.
NEO is currently testing many supports (EMA200, ex-resistance of the broken triangle) that are for now, well... supporting.
If NEO goes under both and reaches $118 before March 05, we are likely to fall to the next support line which would be around $111.
However, if supports hold and volume increases, that would put the NEO market bullish and we might actually retest the $140 resistance soon.
Please, feel free to comment and give insights regarding your way of seeing the NEO market :)
Comment:
It appears NEO will be soon testing again both the EMA200 and trendline support quicker than I thought. Watch closely for the next 18h.
Trade closed: stop reached:
NEO broke important support lines, I believe position should now be closed.
For risky traders, you could keep it open and setup a stop loss at $119.
Looking for reentry around $110.
For risky traders, you could keep it open and setup a stop loss at $119.
Looking for reentry around $110.