NEOUSD Medium-term Trend: Bearish
Supply zones: $80.00, $90.00, $100.00
Demand zones: $50.00, $40.00, $30.00
The downtrend continuation is smooth for Neo in the medium-term. The bears did exactly as analysed last week – breaking the $60.00 demand zone in a unique style. The bears broke the zone and pushed price further down to the $58.39 demand area on May 12th. The formation of a bullish hammer on this date brought in the bulls whose momentum pushed tne price up to the supply area at $69.32. Further upward rejection was seen as the bears set in again and pushed the price down to the $63.00 demand area. From the chart, we could see that the price did not break the downward trendline as the bull’s momentum faded away. The daily candle opened bearish at $68.09 which means more bear pressure and presence; as could be seen from the chart – the price was pushed below the three moving average crossovers after the daily open. The stochastic oscillator signal is pointing down which further confirms the strong downward momentum of the price by the bears’ activities. The bears’ target may possibly be the $55.00 demand zone in the medium-term as the journey to the south continues
NEOUSD Short-term Trend: Ranging
Neo is ranging in the short-term. The bears’ control of the market saw the price drop to the $63.00 demand area which created a triple bottom formation that sent the bulls back to the market. The bulls managed to push the price up to $69.00 supply zone and lost momentum for further movement. The bears arrived strongly as they pushed the price further down to the $62.00 demand area. Currently, Neo is consolidating in the short-term. Traders should be patient and wait for a breakout from the upper supply zone at $69.00 and a possible retest before going long, or a breakdown from the lower demand zone at $62.00 and a retest before joining the train to the south.
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