NEO traders were in a fix last week. It wasn’t because of price per say but it was because of where these prices were oscillating at. To begin with, it is obvious that NEO buyers are in charge and that is not at all hard to figure out.
First, we can zoom in to the secondary chart and notice that the stochastics are bullish and even though we cannot say the divergence between %k and %d is perfect, atleast they are no indication of any short term convergence.
Secondly, notice the upper BB banding meaning buy momentum is strong. That cannot be discounted.
Now, the main focus last week was if traders could trade the break out or if sell pressure after week ending December 24 could spill over to last week.
Luckily, August highs support held and we ended up trading the break out trade according to the set trend by week ending December 17. We shall continue with the same trend now that last week candlestick ended as a bull.
In the daily chart, there is absolutely no reason to short unless maybe there’s a serious NEO fundamental even which disrupts this buy projection or if prices sinks and close below the middle BB and the minor support trend line.
Already we have buy pressure being reflected by these higher highs-with long lower wicks- and a stochastic buy signal.
Our immediate short term resistance lies at the double tops marked by December 18 and 31 highs at $85. If prices close above this today then buyers should aim for the second Fibonacci extension level at $97.
Our entry chart is bullish and almost replicates the daily chart. Notice that even though price action has been zig zagging its way up, after December 28 temporary dip and close below the 20 period MA, there is no other day when the same dip has happened.
Even though NEO is surging and testing the main resistance line at $84, we need a strong close above that level to confirm bull pressure. Already the stochastics are bearish but we shall consider on chart characteristics for trading purposes.
I have placed a Fibonacci retracement tool between last week’s high lows for fine tuning entries. If there is a correction and NEO prices fail to close above $85 today, then our potential and ideal buy zone should be between $70 and $78 marked by 38.2% and last week’s highs now that there is a strong bull pressure.