Quick update on the NEO market, as mentioned in the report last week, failure to consolidate above our support zones meant lower prices. The market is still attempting to find a bottom and should the price action hold above 0.002400 btc, I think NEO will retest resistance soon.
We have a divergence between momentum and the price at this point in time, similiar to what I pointed out in the Bitcoin report this weekend. The RSI will need to break above 50 for more traders to jump into the market. I am waiting to see if support will hold here, in which case we can most likely expect the bounce to the resistance zone, at this point for me it is the top of the channel
The NEO market is looking interesting with two resistance levels within the channel and a third which is above the channel. The near term resistance in my opinion is around 0.002620 btc, or the MA 10 on the 1 day chart. Second level of short term resistance is at 0.003 btc, should prices break through these two zones, i am sure we will test the top of the channel where we will look for the eventual breakout.
Critical resistance zone and that which traders will look at to signal the charge is at 0.0034 btc in my opinion. There can be quite a few higher risk trades, shorts and longs, to play in this channel before the eventual breakout.
One word of caution, should our near term support at 0.0024 btc fail, there will be lower prices incoming and most of my above report will be void. Safe trades.