A lot of request for NEO, so I went back to a previous post on NEO and looked to see what changed. Pretty much Nothing from our September 17th post'. Doing just what we expected. It has started to consolidate within the yellow channel we drew and has been slowly testing the support of the longer term channel. I added only the two rectangular boxes and the notes that are in magenta (pink). If I could sell short term .0045 puts on this I would. But notice NEO is forming a slightly positive support line similar to the one it did prior to wave 5. Almost identical slopes. It has also formed the same ABCDE triangular wedge pattern as well. I will caution about reading the wedge, it has come off a major correction so this does not imply it is going to the upside alone, so we need to dive in a little further.
The bottom left chart is also very interesting as well. Notice after the correction we have similar movements, with the later being within a tighter channel. What is interesting is after the first two down channels we made a triple bottom. We did not get the same pattern after the second two down trend channels. Currently we bounced off the new short term trend line and did not retest this line and since yesterday afternoon have continued to consolidate off the ABC corrective pattern (not shown for clarity) in the upper right hand chart. I threw the RSI indicator on the chart to see if that was telling us anything. Nice. Since the 22nd it has tested the 45 level but not broken through, this may be a battle between the bulls and the bears. It also Briefly tested 80 but couldn't hold.
Let's take a look at how it is doing since the China selloff. Well after the initial selloff we are down about 5-6%. But only one coin has recovered and done better than NEO since the crash and that is DASH. OMG percentage wise is about the same, but both BTC and ETH have dropped further. Very interesting. Please note these are in USD and not BTC in order to provide an accurate assessment.
So what can we gather from all this.
#1 I would not be short NEO at this point. The charts are signaling this coin wants to go higher and is in a slightly bullish trend since the 22nd.
#2 If you wanted to buy NEO I think you could enter a small 1/4-1/3 position at this point and wait for a better price, or buy a strong breakout to the upside
#3 The consolidation box may provide an opportunity to make a quick trade either up or down as the longer the consolidation the more reliable the direction of breakout is for scalping
#4 I would not enter a long term trade or enter a full position as Bitcoin is in a bearish trend and a further correction is likely. Since there is no way to backtest how the market reacts when Bitcoin goes through a major correction, (no safe haven coin other than fiat) I would be hesitant to say they will not correlate if bitcoin sells off.
Conclusion: NEO after a tremendous run, has corrected fully, and from the charts is starting a bullish trend. But with bitcoin still to fully correct (in our opinion) I am hesitant to buy for the long term, unless it is an initial position. It is also setting up nicely for a consolidation trade if you can catch it. Remember on these trades do not get greedy, 2-3% is a nice return and even if you sell off in 1/2 positions like 2%-5%. Gives you some protection. BOTTOM LINE BITCOIN MAY BE HOLDING THIS COIN BACK FROM MAKING A NICE BULL RUN HERE!
The bottom left chart is also very interesting as well. Notice after the correction we have similar movements, with the later being within a tighter channel. What is interesting is after the first two down channels we made a triple bottom. We did not get the same pattern after the second two down trend channels. Currently we bounced off the new short term trend line and did not retest this line and since yesterday afternoon have continued to consolidate off the ABC corrective pattern (not shown for clarity) in the upper right hand chart. I threw the RSI indicator on the chart to see if that was telling us anything. Nice. Since the 22nd it has tested the 45 level but not broken through, this may be a battle between the bulls and the bears. It also Briefly tested 80 but couldn't hold.
Let's take a look at how it is doing since the China selloff. Well after the initial selloff we are down about 5-6%. But only one coin has recovered and done better than NEO since the crash and that is DASH. OMG percentage wise is about the same, but both BTC and ETH have dropped further. Very interesting. Please note these are in USD and not BTC in order to provide an accurate assessment.
So what can we gather from all this.
#1 I would not be short NEO at this point. The charts are signaling this coin wants to go higher and is in a slightly bullish trend since the 22nd.
#2 If you wanted to buy NEO I think you could enter a small 1/4-1/3 position at this point and wait for a better price, or buy a strong breakout to the upside
#3 The consolidation box may provide an opportunity to make a quick trade either up or down as the longer the consolidation the more reliable the direction of breakout is for scalping
#4 I would not enter a long term trade or enter a full position as Bitcoin is in a bearish trend and a further correction is likely. Since there is no way to backtest how the market reacts when Bitcoin goes through a major correction, (no safe haven coin other than fiat) I would be hesitant to say they will not correlate if bitcoin sells off.
Conclusion: NEO after a tremendous run, has corrected fully, and from the charts is starting a bullish trend. But with bitcoin still to fully correct (in our opinion) I am hesitant to buy for the long term, unless it is an initial position. It is also setting up nicely for a consolidation trade if you can catch it. Remember on these trades do not get greedy, 2-3% is a nice return and even if you sell off in 1/2 positions like 2%-5%. Gives you some protection. BOTTOM LINE BITCOIN MAY BE HOLDING THIS COIN BACK FROM MAKING A NICE BULL RUN HERE!
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Just watching a 100BTC order for NEO getting eaten bit by bit. Now that is an order and one to watch. looks like a topping signal is forming!