NEO Technical Analysis
We've had some solid consolidation in NEO since the 14th August. Trade volume has been decreasing steadily yet the price hasn't dropped in any significant way - indicating bears and bulls have been equally matched.
NEO has found some strong support at the 0.5 Fibonacci retracement level (~32.7USD) which it bounced off of in the early morning of the 23rd August.
Now the 0.382 Finonacci retracement level has become a new support level (~38.4USD), and there appears to be a pennant pattern forming on an 8-hour chart with the apex of the pennant forming around this 0.382 support level.
However, I wouldn't call this a particularly strong pattern as it is still circumscribed by this pattern despite it now passing the 3/4 time mark of this pattern without a break-out. A break-out of some kind is always inevitable in the end, so the more time that passes with the price ranging within this triangle the weaker the signal becomes (normally a break-out between 2/3-3/4 of the way through this time zone would indicate a relatively strong signal).
If we do see a break-out to the upside, after some retesting of 0.382 Fibonacci support level (which is also the pennant apex in this case), I'd expect a rally to the price of about 72USD - predicted by the pennant pattern. However, I do have some doubts about the width of the triangle I've drawn. A narrower triangle could well be more accurate and as such 72USD is likely the maximum level we would see this (potential) rally drive the price to.
Looking at trend-based fibonacci time (timing is equally as important as price, if not more so), I will take an educated guess and say this rally will reach this predicted level between the 3rd-7th September.
Some other interesting observations:
1. For about the last week red candlesticks have been occurring on lower volume than green candlesticks, and overall it appears that the lower wicks are longer than the upper wicks - indicating bullish pressure.
2. Stochastic RSI and MACD are giving conflicting signals. This could imply other signals/patterns are not as strong, but not necessarily.
3. There has been a long squeeze occuring on decreasing volatility and volatility looks like it will fall below 20 on the Average Directional Index Indicator - signalling a strong squeeze signal with a potentially bullish release.
4. The squeeze was not released to the downside despite it trending this way from 19th-24th August, and although TTM Wave A was below 0 for quite some time, and TTM Wave B trended lower, these have now reversed with TTM wave A trending upwards and TTM Wave B being above 0 and trending upwards. TTM Wave C has always remained above 0 - which points to the squeeze releasing the the upside.
NEO has found some strong support at the 0.5 Fibonacci retracement level (~32.7USD) which it bounced off of in the early morning of the 23rd August.
Now the 0.382 Finonacci retracement level has become a new support level (~38.4USD), and there appears to be a pennant pattern forming on an 8-hour chart with the apex of the pennant forming around this 0.382 support level.
However, I wouldn't call this a particularly strong pattern as it is still circumscribed by this pattern despite it now passing the 3/4 time mark of this pattern without a break-out. A break-out of some kind is always inevitable in the end, so the more time that passes with the price ranging within this triangle the weaker the signal becomes (normally a break-out between 2/3-3/4 of the way through this time zone would indicate a relatively strong signal).
If we do see a break-out to the upside, after some retesting of 0.382 Fibonacci support level (which is also the pennant apex in this case), I'd expect a rally to the price of about 72USD - predicted by the pennant pattern. However, I do have some doubts about the width of the triangle I've drawn. A narrower triangle could well be more accurate and as such 72USD is likely the maximum level we would see this (potential) rally drive the price to.
Looking at trend-based fibonacci time (timing is equally as important as price, if not more so), I will take an educated guess and say this rally will reach this predicted level between the 3rd-7th September.
Some other interesting observations:
1. For about the last week red candlesticks have been occurring on lower volume than green candlesticks, and overall it appears that the lower wicks are longer than the upper wicks - indicating bullish pressure.
2. Stochastic RSI and MACD are giving conflicting signals. This could imply other signals/patterns are not as strong, but not necessarily.
3. There has been a long squeeze occuring on decreasing volatility and volatility looks like it will fall below 20 on the Average Directional Index Indicator - signalling a strong squeeze signal with a potentially bullish release.
4. The squeeze was not released to the downside despite it trending this way from 19th-24th August, and although TTM Wave A was below 0 for quite some time, and TTM Wave B trended lower, these have now reversed with TTM wave A trending upwards and TTM Wave B being above 0 and trending upwards. TTM Wave C has always remained above 0 - which points to the squeeze releasing the the upside.
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