NEO Price: Formation of Double Bottom Chart Pattern, Price Increase Envisaged

NEO Price: Formation of Double Bottom Chart Pattern, Price Increase Envisaged

 NEO Price Analysis – October 19

The breakup of the dynamic resistance levels will push the coin to the $19 resistance level; further increase in the bulls’ pressure will place the NEO price to $22 and $25. In case the $19 resistance level rejects the price increase, bearish momentum may continue to $16, $14, and $12 support levels

 NEO/USD Market
 Key Levels:

Resistance levels: $19, $22, $25

Support levels: $16, $14, $12

 NEO/USD Long-term Trend – Bullish 

 NEO/USD was under the bearish pressure last two weeks. The price has been oscillating within the $19 price level and $16 price level. The bears pushed the coin to test the support level of $16 at first on October 06. It pulled back to retest the slow dynamic resistance level (21EMA) but could not push through the level. It reverses to test the support level of $16 second time on October 16. The level rejected a further price decrease. Followed the scenario is the formation of more daily bullish candles; the price is gradually increasing towards the $19 price level.

NEOUSD Daily chart, October 19

The crypto is breaking up the dynamic resistance level at moment, trading in between the 9 periods EMA and 21 periods EMA which indicates that the bulls are taking over the NEO market gradually. The breakup of the dynamic resistance levels will push the coin to the $19 resistance level; further increase in the bulls’ pressure will place the NEO price to $22 and $25. In case the $19 resistance level rejects the increase in price, bearish momentum may continue to $16, $14, and $12 support levels

  NEO/USD Medium-term Trend – Bullish

 On the medium-term outlook, the buyers are taking over the NEO Market gradually. The price action has formed a “double bottom” chart pattern; this is a bullish reversal pattern formed at the $16 price level. There is a high possibility that the NEO price will increase to the $19 level in which it may continue increasing towards the $22 price level.  

NEOUSD 4 hour chart, October 19

The Crypto is trading above the two EMAs and the 9 periods EMA is crossing the 21 periods EMA upside. However, the relative strength index period 14 is at 60 levels bending up to indicate a buy signal. 

 

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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.