NEO market update: NEO/USD breakout targets $10 resistance

• NEO managed to find a short-term bottom at $8.5 giving way for the ongoing price action.
• A reversal has pulled NEO above the 50 SMA and the descending trendline resistance.

NEO is breaking out in defiance of the prevailing indecision across the market. The downtrend witnessed from the beginning of August has been sending jitters among investors. The hope for closing the year on a positive note is gradually being crushed by frequent declines coupled with a lower high pattern.

NEO/USD extended the bearish action under $10 since the first week of August. A slide below the simple moving averages; 100 SMA 4-hour and 50 SMA 5-hour fueled the drop. NEO managed to find a short-term bottom at $8.5 giving way for the ongoing price action.

A reversal has pulled NEO above the 50 SMA and the descending trendline resistance. However, $10 still remains untested. Limiting movement is the 100 SMA, although technical levels look relatively positive.

The Relative Strength Index (RSI) is above the average in a move that started around 40. A continued movement towards the overbought will strength the bullish grip. The Moving Average Convergence Divergence had dipped into the negative but a recovery is underway. Crossing above the mean line will be a bullish signal.

Initial support is observed at $9.0 but last week’s low at $8.5 will protect the downside in case of an extended reversal.

NEO/USD 4-hour chart