NEO How to Trade
Updated
If we look at the 4H chart of NEO, we can see a trend reversal chart pattern. Head & Shoulders pattern on the top gives a signal that the market is going to move downward. For confirmation this price movement, we'll need a price breakout below the signal line of H&S pattern. If so, the market will be able to drop to 15.50 level. For reaching this target based on H&S, the market will have to pass through several support levels. We'll have to watch closely for price action near these levels, because they willl be able to give us new buy signals. We'll have to be ready open long trades based on confirmed reversal signals from 30.50, 21.50 and 15.50 levels. Alternative, if the price bounces from support zone formed by 40.50 and 38.00 support levels, we'll see a new upward movement. RSI will have to confirm price reversal. For confirmation the main uptrend, we'll need a price breakout above 52.30 level. Pending orders for buy can be placed at this level.
Note
The market breaks the support zone. We should watch for price action near 32.00 level and the main uptrend line. If the market bounces from this zone, we'll have a new buy signal. If the market drops below, probably we'll have further downward movement to 21.50 support level.
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.