We have been bullish on NEO because it broke out of the bearish descending triangle pattern on Feb. 26. Therefore, we had recommended to buy it at $126 levels with the stop at $105. However, the price has not moved according to our expectation.
The NEO/USD pair has turned down sharply from the overhead resistance at $140. If the price fails to find support at $120 levels, it is likely to fall to the next immediate support of $110. We believe this zone to offer strong support. Therefore, we have retained the stop loss at $105.
Both the moving averages are flattening out, which suggests a range bound action for a few days.
On the upside, the cryptocurrency will gain momentum only above $140.