Taking a quick look at the NEO price action the last few weeks. Upon quick inspection we can see that the NEOUSD chart is practically a mirror image of the BTCUSD chart.
The current bearish trend in the market is clearly seen on the 4hr candle chart, and the resistance from the 20 MA has been proving to much for the bulls. There was some nice price action when the market dipped below $30, we saw buyers stepping in pushing the prices back to the $30 support zone.
There is a nice divergence between the MACD and the price chart, it will be interesting to see what happens as there are many contradicting signals right now.
Lets take a look at the NEOBTC market to get a better understanding of where the price action could be heading this week.
Here we can see that NEO is still in a strong bearish trend vs Bitcoin which has been keeping the gains vs USD to minimum as BTC recovers momentum. There is a very nice divergence on this chart as well, which makes me bullish on the market, with higher risk trading in mind.
MACD and Volume indicators are confirming this divergence for me at this point in time, keep an eye on the resistance levels to catch the possible breakout in the market.
Resistance is solid around 0.00525 btc and any entries in this zone should be considered higher risk, please set up your trades accordingly. A safer entry into the NEO market would be after consolidation above the current resistance zone. Safe trades.