Cryptocurrencies

NEO technical analysis

NEO seen from the temporality of 1W we can see how the structure of candles has formed a descending wedge in which the price has been slowly contracting within the figure, this is a signal of a close change of trend, the current candle, 2 days after closing is showing good buying pressure, the price needs to close above the diagonal resistance of the figure to achieve go in search of our profit targets that we can see indicated in the chart above through the upper horizontal black, the first target gain we have located at 0.001227, the second objective is located at 0.001582, the third objective is located at 0.002423.

NEO seen from the temporality of 1D we can observe more closely the current price movement, we see how three highs have formed on the diagonal red color indicated in the chart where the price is being strongly rejected, currently the price should continue to fall near the support of the figure, I have indicated a horizontal as a guide to the possible pullback that could be generated during a major setback, if the support of the figure does not support the price, the odds of falling into the area of demand are very high, so we must be very attentive to the price reaction at 0.000780 – 0.000810.

In conclusion, NEO is a strong currency that currently in its pair with BTC is at a very low price, the descent into the descending wedge makes it possible for a change in trend to occur in the short term, to enter long we need the price to close above the diagonal resistance of the figure, Currently the price is at oversold levels indicated by the technical indicator RSI, as we see in the image above at the bottom, however, if the price does not get enough force for the break up, we could have a fall towards the zone of demand located at 0.000677, so I recommend to be very attentive to the action of the price through a smaller temporality in 1D and the weekly closing, do not forget to secure your operations through the use of stop loss.

As I always say, you have to be aware of the movement, invalidations can occur, there is no 100% reliable analysis, take your own precautions when trading.

You can follow me on Twitter: https://twitter.com/armijogarcia

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