NEO PRICE IS APPROACHING A POTENTIAL BULLISH REVERSAL ZONE

NEO PRICE IS APPROACHING A POTENTIAL BULLISH REVERSAL ZONE

NEO Price Analysis – October 05

NEO is approaching a potential bullish reversal zone; the rejection of the price at the $16 support level may be a price reversal towards the resistance level of $19, $22, and $25. In case the support level of $16 does not hold, the price may reduce to $14 and $12 support level.

NEO/USD Market
Key Levels:

Resistance levels: $19, $22, $25

Support levels: $16, $14, $12

NEO/USD Long-term Trend – Bearish

The bears maintain their pressure in the NEO/USD market. The price is obeying the command of the chart pattern formed last week (Head and Shoulder pattern). The former support level of $19 has turned to a resistance level after the breaking of the level by the bears’ pressure. Yesterday, NEO pulled back and gain 1.2%.

NEOUSD Daily chart, October 05

Today, the crypto is continuing its bearish movement targeting the support level of $16. The 21 periods EMA remains above the 9 periods EMA while the price is trading below the later EMA; an indication of bearish momentum. NEO is approaching a potential bullish reversal zone; the rejection of the price at the $16 support level may be a price reversal towards the resistance level of $19, $22, and $25. In case the support level of $16 does not hold, the price may reduce to $14 and $12 support level.

NEO/USD Medium-term Trend – bearish

The sellers dominate the NEO market in the 4-hour chart. That means NEO/USD is under the bearish momentum. Further price reduction is envisaged as the $19 price level has been penetrated downside and it is moving down towards the $16 demand level.

NEOUSD 4 hour chart, October 05

The two EMAs are at distance to each other and the price is trading below the 9 periods EMA and 21 periods EMA as a sign of an increase in the bears’ momentum. The Relative Strength Index (14) on the 4-hour chart is at 40-level bending down which reveals that the bears may continue to hold the market. The price may reduce to the demand level at $16.

 

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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.