The Ascent of NEO: A Technical Analysis (Binance)
Updated
This idea is the continuation of one I started at my old profile, ofbullsandbears. Here is the link if you would like to start from the beginning.
All future updates and new ideas will be posted on this new profile. I hope you continue to extract value from my ideas. Thanks for reading!
Alright, let's get down to it! On my last two comments I was looking at an inverted cup & handle pattern and possible support levels if the price were to fall, in addition to some upward resistance we could expect. As I hoped for, buying appeared just above the cup & handle break point at the $123 level. Bulls have pushed up through the mega downtrend line again but have been met with heavy resistance thus far. The 7-EMA has been providing support over the last few 4-hr candles, showing that in the short-term NEO is bullish. However, that is three separate instances where NEO has tested the top of the downtrend and failed, I have these circled in yellow on the chart below.
Considering the three recent failures in closing above the downtrend line I have drawn in an ascending triangle, which is a bullish continuation pattern, in the screenshot of 4-hr chart below. If the price breaks down below the downtrend line we can expect to find support around the 25-EMA as well as the bottom of our triangle.
I would like to point out a few indicators that I see as bullish on the 1 day chart below. First, the RSI has been forming higher highs since NEO found its bottom. It still has room to go up, that is telling me that this rally is not close to being over. Secondly, the MACD has been steadily making its way upwards which is showing strength. Lastly, the 25-EMA has continued to provide support over the last 5 days.
The downtrend resistance cannot hold forever. I expect to see a breakout and close above within the next two days. We can still expect the next level of resistance to be the 61.8% retracement line.
Thank you for reading. As always, have great days or nights, where ever you are. Trade Safe. Trade Smart.
All future updates and new ideas will be posted on this new profile. I hope you continue to extract value from my ideas. Thanks for reading!
Alright, let's get down to it! On my last two comments I was looking at an inverted cup & handle pattern and possible support levels if the price were to fall, in addition to some upward resistance we could expect. As I hoped for, buying appeared just above the cup & handle break point at the $123 level. Bulls have pushed up through the mega downtrend line again but have been met with heavy resistance thus far. The 7-EMA has been providing support over the last few 4-hr candles, showing that in the short-term NEO is bullish. However, that is three separate instances where NEO has tested the top of the downtrend and failed, I have these circled in yellow on the chart below.
Considering the three recent failures in closing above the downtrend line I have drawn in an ascending triangle, which is a bullish continuation pattern, in the screenshot of 4-hr chart below. If the price breaks down below the downtrend line we can expect to find support around the 25-EMA as well as the bottom of our triangle.
I would like to point out a few indicators that I see as bullish on the 1 day chart below. First, the RSI has been forming higher highs since NEO found its bottom. It still has room to go up, that is telling me that this rally is not close to being over. Secondly, the MACD has been steadily making its way upwards which is showing strength. Lastly, the 25-EMA has continued to provide support over the last 5 days.
The downtrend resistance cannot hold forever. I expect to see a breakout and close above within the next two days. We can still expect the next level of resistance to be the 61.8% retracement line.
Thank you for reading. As always, have great days or nights, where ever you are. Trade Safe. Trade Smart.
Note
The breakout and close above the downtrend line happened a bit more quickly than predicted but who am I to complain. The top of the ascending triangle may force the price back down over the next few hours, however I expect this to be short lived as the 25-EMA, the bottom of the triangle and the downtrend line should act as support. Once the triangle top is broken the 61.8% should be a nice spot for NEO to catch it's breath in preparation for the next rally to our target at the 78.6% retrace. Let's take a look at the 4-hr chart for some visual reference.As always, have great days or nights, where ever you are. Trade Safe. Trade Smart.
Note
Hello fellow traders!What a day, huh? Let's take a look at the 4-hr chart below so we can try to see what has happened to our rally over the last 22 hours.
Note
At 20:00 UTC while retesting the bottom of our triangle, NEO found a hole and fell right through all the way down to the light blue support levels from earlier in the ascent. There was a decent bounce and the current 4-hr candle is forming a hammer. On the bright side, this does show strong support at this level.
On the 1-hr chart below I have drawn in a head and shoulders reversal pattern which had a downside target of $123. See how beautifully it lines up with the push back upwards. Notice how low the RSI has fallen during this descent of NEO. Last time the RSI levels were this low was at the head of the inverse h&s pattern, which lead to a upward movement of nearly 100%. I am not saying this will happen again. I mention this only to inject a positive vibe during this recent downturn. That being said I do expect a healthy recovery in the coming hours.
I do have another idea that is loud enough in my mind's eye that I feel inclined to include it here. There is the possibility that NEO needs more time to consolidate and will do so by becoming range bound inside the purple channel shown in the chart below.
Good luck out there!
And as always have great days or night, where ever you are.
Trade Safe. Trade Smart.
Note
Hello fellow traders!Let's hop right in shall we? I've drawn in the new micro downtrend that has formed over the last couple of days in red, a couple of bear flags in white and our old friend the mega downtrend in orange. My inclination to include the mind's eye prediction in my last post proved to be worthwhile, as NEO found some loving support in the lower threshold of the channel, which coincidentally correlates with the 38.2% fib retrace.
My mind's eye is speaking to me again, see the inverse H&S pattern I've drawn in below. I expect the bottom of the channel & the 38.2% line to hold and force NEO up again, this time with an upside target at the top of our channel at 140ish mark. However, the micro downtrend line, the 100 EMA and the mega down trend line may prove to be a major inflection point forcing NEO further downward. The way I see it the score looks to be Bears 3 and Bulls 1.
As always, have great days or nights, where ever you are.
Trade Safe. Trade Smart.
Note
Hello fellow traders!As shown in the 2-hr chart below, it seems that the "Hmmm..." bubble was such an inflection point that NEO had to bypass it completely and create a new head for the h&s pattern before hitting my mind's eye target right on the nose. From here NEO must break and close above the purple channel if this rally is to continue upward. Otherwise my previous mind's eye prediction on Feb 20, may also come true and NEO will be range bound. The next level of resistance that NEO will encounter if breakout ensues will be the 61.8% retrace. This level has proven to be pretty heavy in the past. Looking back to January, NEO suffered a few failed breakouts on the 17th, 18th, 20th and a prolonged failure over the course of the 29th & 30th.
As always, have great days or nights, where ever you are.
Trade Safe. Trade Smart.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.