NEO (NEO/USD) Analysis February 6, 2018

NEO analysis

NEO (NEO/USD) Analysis February 6, 2018

From the weekly chart, we can easily note that NEO prices were confined within a $60 range defined by the 1st and 2nd Fibonacci extension levels.

As mentioned before, relative to other alt coins, NEO appears to be over-valued and as such, it is likely that bears will be in charge in the coming sessions.

Considering the past few weeks price action, NEO has been consolidating after that double bar bear reversal pattern and over-extension by week ending January 21. In my view, a definitive break above or above these two limits at $100 and $160 is needed.

Therefore, for bears to be completely in chart, all we need is for prices to close below $100-it was only tested last week-and perhaps test the middle BB.

If it does that, it will be inevitable for August highs at around $60 to be retested and that means we should be hunting for buy opportunities as the second phase of another bullish break out pattern take shape at around $60.

In the daily chart, it is clear that sellers are in charge and even if there were attempts of higher highs on January 2 and 3, the 38.2% Fibonacci retracement level and the middle BB acted as resistance. It is from there that you can see the liquidation that happened yesterday.

Sellers are still in charge and I cannot discount possibilities of prices touching August 2017 highs at around $60 or the 78.6% Retracement level in the coming sessions. In the mean time, sellers should be looking for sell opportunities in lower time frame as they set their targets at $85 now that candlesticks appear to be banding along the lower BB.

On Friday there was a double bar reversal pattern forming right on support but consequent candlesticks found resistance at previous support turned resistance as marked by the resistance trend line connecting January 7,17 and 22 lows.

It is also clear from the chart that the main support line at around $110 is strong and at the moment price action is finding it hard to close below it. Chances are, a double bottom might form in the coming session. If sell pressure is to continue then prices must close below the consolidation but prices might trend up towards $130 before that happens.

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