From a buyer’s perspective, NEO has been a wonderful investment. Price action wise, the correction from $123 is welcomed. This is so because the more prices zag back to within normal weekly trading range, the more price is discounted for buyers.
Of course we don’t expect much and even if we put in a bad-case scenario where prices correct towards $93-the first extension level then that too will be best for buyers.
The middle BB has a long way to go before being used as a support reference so we shall only depend on BB and price action characteristics.
In the daily chart, our main support line lies at $85 and that is where NEO buyers were buoyed before prices rocketed towards $123. Following that accumulation from December 18 to January 1, the consequent surge qualifies to be a bull break out. Now that our protracted take profit levels were hit, the second phase of a break out trade is developing if yesterday’s candlestick is used as an indicator.
We expect a retest of support in the next couple of days after January 10 bear candlestick was confirmed by a bearish engulfing candlestick on January 11.
Should today also end up bearish, then we can increase our odds of a retest before trend resumes according to January 2 bull break out.
NEO prices reversed picked up from where it accelerated from earlier in the week-the 23.6% Fibonacci retracement level. That by all accounts mean buy pressure is high.
These higher highs will only become important if and only if they close above January 9 highs of $130 today.
It will also mute bears and shift our attention to $150 where we expect NEO bulls to take their profits in the short term.