Trade Recommendation: NEO


Our April 9, 2018 trade recommendation for NEO achieved its target on April 24 when it went as high as 84.72. Those who followed the trade recommendation grew their investments by over 60% in two weeks.

While the pair overshot our target and climbed to 94.65 on April 30, the break above the 80 resistance was a bull trap. As bears flexed their muscles, those who bought the false breakout cut their losses. This ignited a selling frenzy that saw NEO post six consecutive red candles on the daily chart.

Eventually, the market found selling relief at the 23.6% Fibonacci level. We were hoping for a bullish higher low setup as NEO tried to stay above that level for about a week. On May 23, however, it broke the support. While the price action is bearish, it gives us an opportunity to bottom pick the market.

Technical analysis show that NEO/USD is still locked in sideways consolidation. It appears to be trading the range between $45 – $80. With the pair going below the 23.6% Fibonacci level, the next firm support is $45. In addition, the market is nearly oversold. So when NEO drops to $45, the oversold readings might help spark a rally.

The strategy is to buy as close to $45 support as possible. If bulls preserve this support once again, they will attract bottom pickers that can help push the pair to our target of $80. We’ll revisit this trade for the possibility of a breakout.

The process may take a month.

Daily Chart of NEO/USD on Bitfinex

As of this writing, the NEO/US Dollar pair is trading at $52.50 on Bitfinex.

Summary of Strategy

Buy: As close to $45 as possible.

Target: $80

Stop: $43

Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

No Comments
  1. […] CONTINUE READING. […]

Leave A Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.