NEOUSD Medium-term Trend: Bullish
Supply zones: $70.00, $80.00, $90.00
Demand zones: $50.00, $40.00, $30.00
A bullish trend is set to resume in the medium-term outlook of Neo. The bears failed to hit their target at the $50.00 demand zone but managed to push the price down to a fresh demand area at $51.00.
The formation of a double bottom in this area brought the bulls back. The bulls have since started pushing the price up gradually. Currently, Neo’s price is above the 12-day EMA with a long bullish candle. It is currently in wave 5 of the Elliot wave strategy. The wave count started on May 21, with wave 2-3 being the longest and covering May 21 to 23.
At wave 5, the price is likely going to rise to the supply area around $56.00. A minor pullback to the demand zone at $55.00 is possible before another upward push occurs. The stochastic oscillator is at 49 percent, above the oversold region with signal pointing up. This suggests upward price movement as the bulls exert more pressure. The bulls’ target is at the $65.00 supply zone in the medium-term.
NEOUSD Short-term Trend: Ranging
Neo is consolidating in the short-term. The pair is trading between the upper supply range at $57. and at the lower demand range at $51.00. The bearish momentum that brought the price twice to the demand area was met with rejection and equal bullish pressure. The double bottom formation in this area brought in more buyers that push price high up to the supply area at $54.00. In consolidation, a breakout or a breakdown is a must, hence patience is really needed to follow the market as it plays out.
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