The NEO market broke out of its longer term bearish trend at the start of last month. Since then we have had some good sideways movement in the market as it attempts to find a bottom. Like I mentioned in the Ethereum report, this could be seen as a possible bearflag, or a possible bottom forming. Picking bottoms is a dangerous past time, lets take a look at the 1day candle chart for neobtc.
In order for the market to get to a new high we will have to consolidate above this trading channel we currently find the market in. Prepare for a move in both directions by keeping a close eye on the near term support and resistance levels.
Currently I put the shorter term support zone at 0.0026 btc – 0.00266 btc, should the market fail to consolidate above this price level I will look to the short side of the market. Another sell-off here would take us to our medium term support which is around 0.002 btc – 0.00235 btc.
Consolidation in the bottom of the channel will most likely lead to a retest of the upper channel. This is the price level I will look towards for the eventual breakout in the market. Resistance in my opinion is currently at 0.0029 btc – 0.0034. Higher risk and seasoned traders will look to play the bounce here should current support hold, possible longs and shorts in this channel. Safe trades.