Two things are remain significant in the weekly chart as far as price action is concerned. First, that close above $100 and secondly, the retest of the middle BB at around $80.
As you may have noticed, this flexible support is a perfect loading line and buyers have a way of supporting falling prices.
The question now remains, will last week’s bull pressure continue this week? If yes, will there be higher highs and close above key resistance levels in lower time frames? Well, that entirely depends on momentum and as we can see, the weekly stochastics are extremely bearish and diverging.
In my opinion, it looks like every high in this time frame is another selling opportunity especially if we consider the lack of buy pressure as the week opened-notice that there is no lower wick?
In the daily chart, NEO prices are literally consolidating and there is nothing much-capital gain wise-that can be said after that double bar reversal pattern last week.
Yes, it was a perfect spring board for buyers to fade prices but as it is, there is no momentum needed to breach the middle BB which by the way is acting as a very reliable resistance line.
I will reiterate that as long as prices are held within this $50 range between 38.2% and 61.8% Fibonacci retracement lines, then I remain bearish that is regardless of if buy momentum is increasing or not.
The consolidation in the daily chart can be best seen in this time frame and while we need a break above $130 if buyers are truly in charge, we have set a couple of triggers along the way.
All we need is a surge past this very minor resistance trend line in this otherwise ranging market. If that doesn’t happen, it is likely that prices might correct back towards $100 which we like we have seen before is a psychological round number and sensitive to price change.