NEOUSD Medium-term Trend: Bullish
Supply zones: $80.00, $90.00, $100.00
Demand zones: $40.00, $30.00, $20.00
The bulls are still in control of Neo in the medium-term. The pair resumes its uptrend after the correction that drove the price to the $65.87 demand area. This was indicated by a bullish engulfing candle and closed above the three exponential moving averages crossover. The price is going for a fourth touch at the $70.00 supply zone, but may not be rejected this time around because, at every fourth touch of a resistance, a break to the upside has high probability. A momentum to the upside is expected as the stochastic oscillator is in the oversold region with its signal pointing up. The daily candle opened above the three moving averages crossover, meaning more buyers are taking position. If today’s candle closes above $70.00 supply area, we should expect more buying pressure that will likely take us to the $80.00 supply zone.
NEOUSD Short-term Trend: Bullish
After the correction yesterday, Neo resumes in an uptrend today. The double bottom formation at the $65.87 demand zone led to the bulls comeback. The price was pushed high to the $68.00 supply area after a bullish hammer formation followed by a bullish engulfing candle above the three moving averages crossover. The stochastic oscillator was rejected for a downward move at 50%, and it is now heading up, signaling more buying pressure. A minor pullback may occur, but there are good buying opportunities especially within the three exponential moving averages. More likely, the price may test the $75.00 supply area.
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