- NEO recovers from double-top pattern reaction below $25.00.
- Bulls are currently looking forward to $27.40 and $28.01 supply zones.
NEO price reacted lower following the double top-pattern I spotted during my price analysis on Monday 6. The bullish trend came so far from the lows slightly above $26.00 but it lost steam short of $28.40. Consequently, the lower corrections that followed as a reaction to the double-top pattern broke the critical support at $26.00. NEO/USD even changed hands marginally below $25.00 before a bounce occurred towards the close of the session as seen on the chart.
Although the 23.6% Fib retracement level of the last drop from $28.09 to low of $25.74 at $26.29 was limiting gains on Tuesday morning (GMT), the buyers with an intent to retrace higher, broke above the trendline resistance as well as the Fibonacci resistance. NEO/USD engulfing candle made it above $26.00 and $26.80 resistance respectively. At the time of writing, the price is trading above the 50% Fib level while the bulls have their eyes on $27.00 in the near-term.
The stochastic is ranging in the overbought levels (above 70%). Besides, the 50 SMA is moving up to cross above the longer term 100 SMA. This means that the buyers have the power for more corrections. The next resistance target is at $27.20, while the upper supply zones are $27.4 and $28.01 respectively. On the downside, NEO has several support zones at $26.60, the 23.6% Fib level and $26.00.
NEO/USD 15′ chart
Share
