NEO Long-term Price Analysis- 20 November

Azeez Mustapha
  • The bears remains in control of the market.
  • Traders may consider selling at previous demand areas now turned support areas with bearish candlesticks pattern as confirmation for entry.

NEO/USD Long-term Trend: Bearish

Supply zone: $20.00, $30.00, $40.00
Demand zone: $5.00, $3.00, $1.00

The long-term outlook for NEO continues in a bearish trend.  The bearish pressure was sustained below the 10-EMA until 14th November with the stronger pressure, the second trendline was broken with a large bearish candle that dropped NEOUSD to $12.51 in the demand area.

The formation of lower low each day led to the formation of a bearish flag until 19th November that the bears increased their momentum. This led to the formation of a long bearish marubozu candle that dropped NEOUSD to a new low at $10.05.

NEO, NEOUSD, Cryptocompare chartNeo Chart by TradingView

The price is below the two EMAs and currently down to $8.97 in the demand area earlier today with strong indication for more lows. The EMAs are fanned apart which implies strength in the context of the trend and in this case the downtrend.

The stochastic oscillator is in the oversold region at 8% with its signal pointing down which suggests continuation in downward price movement in the long-term.

 

 

 

 

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