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.
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.