The Ascent of NEOUSDT: A Technical Analysis (Binance)
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Hello fellow traders!
I have been on the NEO train since last summer, so it's time to do a proper analysis.
A solid bottom was hit on Feb 6th, which was followed by a nice upward movement. What we have here looks like an inverse head and shoulders pattern signifying a trend reversal. We still need NEO to breakout above the downtrend line before we can confirm the reversal so this is still hypothetical. Measuring this hypothetical pattern gives us an upside target of $170 (purple floating line), coincidentally this matches right up with the 78.6% retracement line. Once the rally hits the downtrend line at around the $135 levels and closes above it we can expect another nice push up out of the downtrend. You can expect a bit of up and down action while crossing the downtrend as sellers will most likely emerge. But this is all just hypothetical at this point, so let's see what some of the indicators are telling us.
All 1 day charts
- RSI is currently sitting just above 50, it has been making higher lows for the last week and a half. This is a good sign of strength.
- MACD is in bear country right now, but not for long. If you look closely you can see a bullish center line crossover.
- DMI is showing strength, with the ADX at 23.6 (slightly lower than we want but still bullish). You can also see the -DI and +DI gravitating towards each other. I am looking for this to continue and eventually I want to see a bullish DI cross to happen.
With these signals combined, I am Captain NEO! Sorry I couldn't pass up the joke. Seriously though, this is all looking great for NEO. These indicators are look bullish to me.
As always have great days or nights, where ever you are. Trade Smart!
I have been on the NEO train since last summer, so it's time to do a proper analysis.
A solid bottom was hit on Feb 6th, which was followed by a nice upward movement. What we have here looks like an inverse head and shoulders pattern signifying a trend reversal. We still need NEO to breakout above the downtrend line before we can confirm the reversal so this is still hypothetical. Measuring this hypothetical pattern gives us an upside target of $170 (purple floating line), coincidentally this matches right up with the 78.6% retracement line. Once the rally hits the downtrend line at around the $135 levels and closes above it we can expect another nice push up out of the downtrend. You can expect a bit of up and down action while crossing the downtrend as sellers will most likely emerge. But this is all just hypothetical at this point, so let's see what some of the indicators are telling us.
All 1 day charts
- RSI is currently sitting just above 50, it has been making higher lows for the last week and a half. This is a good sign of strength.
- MACD is in bear country right now, but not for long. If you look closely you can see a bullish center line crossover.
- DMI is showing strength, with the ADX at 23.6 (slightly lower than we want but still bullish). You can also see the -DI and +DI gravitating towards each other. I am looking for this to continue and eventually I want to see a bullish DI cross to happen.
With these signals combined, I am Captain NEO! Sorry I couldn't pass up the joke. Seriously though, this is all looking great for NEO. These indicators are look bullish to me.
As always have great days or nights, where ever you are. Trade Smart!
Note
NEO had a nice push up the day after the first post. However as expected the mega down trend showed heavy resistance. Let's zoom in to the 1 hr chart and see what it is telling us.NEO made its way up and busted through the mega downtrend but only for a few hours as shown above. The 25 EMA held as support for a retest of the downtrend line. Again the push was met with resistance and fell down through the 100 EMA. Buyers emerged at the $120 levels to push the price back up above the 100 EMA which is currently holding.
Below, I have made a few notes to the same 1 hr chart.
In red we have an inverted cup & handle pattern.
In light blue we have a possible support channel
In yellow are two points of interest
Inverted cup & handles are a bearish reversal formation which can lead to a push further downward. However, during the rally to the top of the mega downtrend line the light blue channel acted as support for both pushes upwards circled in yellow. There is potential that we see buying appear in this range.
Taking a step back to view the 4 hr charts we can see the 100 EMA rising up to act as possible support before our light blue channel is entered. Notice the purple circle I have drawn below. These are bullish hammers and can be viewed as a possible reversal.
Overall, we will see a lot action in this range with the mega down trend and inverted head & shoulders pattern converging. I see 3 support levels in the 100 EMA and the top and bottom of the light blue channel met by a single downtrend. Three against one isn't looking great if you're a bear. I'm interested to see how this one plays out over the next couple of days.
As always have a great days or nights, where ever you are. Trade Safe. Trade Smart.
Note
The bulls were able to sustain a breakout above the mega downtrend line on the 4 hr chart. I'm hoping to see a close above these levels on the 1 day chart next. If the price keeps rising expect heavy resistance at 61.8% fib retracement line as there were several tests of this level at the end of January. Good luck out there.Note
Hello fellow traders and followers! I want to sincerely thank you for reading my posts over the last couple of months. I will not be updating these ideas any further here as I am moving them to another profile. I plan on continuing the chart analysis at the new profile which can be found at:tradingview.com/u/WildmanCryptoConsulting/
I look forward to supporting your trades in the future!
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