Neo Is Range-Bound, Lacks Buyers at Higher Price Levels

Neo Is Range-Bound, Lacks Buyers at Higher Price Levels

Key Resistance Levels: $12, $14, $16
Key Support Levels: $6, $4, $2

NEO/USD Price Long-term Trend: Ranging
NEO is still in a bear market as the bulls failed to overcome the overhead resistance at $12. The bulls have made three unsuccessful attempts at $12 resistance. In October and November 2019, and January 2020,the resistance remained unbroken.

The recent attempt is on January 19, where the bulls tested the $12 resistance and coin was resisted. NEO is falling and the price is expected to reach a low of $6. On the upside, a break above the $12, will signal the resumption of the uptrend. On the downside, if the bulls fail to break the overhead resistance, the coin will commence sideways move between the levels of $6 and $12.

NEO/USD - Daily Chart

Daily Chart Indicators Reading:
The Relative Strength Index (RSI) period 14 level 61indicates that price is in the bullish trend zone. The RSI was previously in the overbought region above level 70. The coin is falling because of the presence of sellers. The Fibonacci tool indicates that the bear market has been reversed at the 1.272 extension level. Presently, the coin is in a sideways trend.

NEO/USD Medium-term bias: Bullish
On 4 hour chart, the coin has been in a range-bound movement above $8.5. The coin made an upward movement after breaking the resistance levels to reach a high of $12. NEO is currently facing resistance at $12. The coin has been repelled but hovers above $10.50 price level.

NEO/USD - Daily Chart

4-hour Chart Indicators Reading
The 21-day and 50-day SMA are sloping upwardly indicating that price is rising. NEO is trading above the 25% range of the daily stochastic indicating that price is in bullish momentum.

General Outlook for NEO
NEO is trading in a sideways trend between the levels of $6 and $12 since September 2019. The bulls are yet to break the resistance at $12 as buying dries up at higher levels. The coin is fluctuating within confined levels; therefore traders should place pending orders.

NEO Trade Signal
Instrument: NEOUSD
Order: Buy Limit
Entry price: $8.50
Stop: $7.0
Target: $12

Note: Learn2Trade.com is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.