NEO (NEO/USD) Analysis November 6, 2017
Neo continues to look very well supported near the $24 level, an area that has been important for the entirety of the month of October. As you can see on the daily chart, I have drawn a nice ascending trendline, which we are rapidly approaching. Because of this and the horizontal support, I feel that it is only a matter of time before Neo starts to find buyers again, and that short-term dips could be opportunities to build up a larger position.
We have seen quite a bit of volatility in this market, but we also have seen plenty of reason to suspect that it may take a while to build up the pressure needed to break out to the upside. Over the last several sessions, we have had opportunities to pick up a few coins here and there, to build up for a much larger position and eventually a major breakout, allowing traders to make larger gains over the longer term. This is more of an investment than a short-term buying opportunity, and I do see that the $32 level has been offering resistance as of late. Because of this, this is not a market you should be involved in unless you have the patience to “buy-and-hold.”
If we were to break down below the $20 level, that would be a much more bearish turn of things, and that should send this market down to the $13 level at the very least. However, this is a market that continues to find plenty of reason to go higher, and if the US dollar starts to roll over, that could help Neo as well. Longer-term, I suspect we are going to go looking for a $40 print, and then $50 after that. If we were to break down, it’s probably best to sit on the sidelines and look for a longer-term signal.