NEO/USD Long-term Trend: Bearish
- Supply zone: $15.00, $20.00, $25.00
- Demand zone: $2.00, $1.00, $0.50
NEO continues in the downtrend in its long-term outlook. The bears sustained the momentum with the break of the lower line of the bearish flag on 23rd April with a drop to $10.32 in the demand area. This was significant with the break of the 50-EMA, a strong resistance. NEO closed the week lower at $9.60 in the demand area as exhaustion set in with the formation of a bullish spinning top.
The price was up at $10.37 in the supply area during yesterday’s session, with resistance against further upward movement at 50-EMA. This should be seen as a pullback to confirm the bearish continuation in the long-term.
With the stochastic oscillator signal pointing down at 19% in the oversold region and the price below the two EMAs crossover, it suggests downward momentum in price.
The journey to $8.50 in the demand area remains a possibility with more candles opened and closed below the EMAs crossover in the days ahead.
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