Back to Chinese Ethereum and from the look of things, our support line marked at $60 is still holding bears a bay. This is good considering the humongous bear pressure that is just hanging above this cryptocurrency.
First off, before we even think of trading, we should consider the long term trend and the benefits offered by the cryptocurrency company.
In this case NEO is an alternative of Ethereum and is being backed by China and with the responsibility, it must somehow perform for the benefit of Chinese DApps developers in the near future. Since we have seen NEO appreciating two folds in a span of three weeks, we are inclined to initiate longs whenever an opportunity presents itself.
From the chart, there is a chance of lower lows but for that to be confirmed, we need strong close below $60 which as we have explained before is a strong support zone which was also broken above two weeks ago.
Currently, buyers and sellers were in a dilemma but we decided to trade the break out trade-and neglect the over-extension- and we shall consider all retest of $60 as buying opportunity especially if there is a stochastic buy signals in lower time frames.
In the daily chart, we have these lower lows which before today were accompanied by a stochastic sell signal. Notice the dip today and the buy pressure developing even after prices temporarily crossed below the $60 and support line? That is important.
After all, this rejection is beneficial for buyers. However, we shall disqualify our buy projection especially if there is close below the middle BB and the support trend line which as we have seen over the past 2 or 3 weeks as being reliable NEO spring boards.
If buyers get the upper hand, then we expect brakes at around $45.
It is simple to trade the 4HR chart. Why? Well, there is only one trigger that prices need to get through before sellers aim for $45 or even lower as equilibrium is sought in the weekly chart.
NEO sellers need to get through the minor support trend line as we can see in the 4HR chart. Already, we have a stochastic sell signal with prices hovering around $60 which we all know is a confluence of support.
If there is a push and close below the support trend line, then we sell.