- NEO took a hit from the bear wave across the market this week testing $9 support.
- Technical levels finally align in favor of NEO bulls; recovery is underway.
NEO is trading between the moving average support and resistance. The 50 Simple Moving Average (SMA) 4-hour is establishing as support currently at $9.78 while the 100 SMA 4-hour is limiting movement north at $10.23.
NEO took a hit from the bear wave across the market this week. The losses pressed down against various support levels including $10. The sellers intensified their grip extending the action towards $9. However, a low formed at $9.14 allowing the bulls slight control over the direction of the price.
The initial attack on the $10 level resistance failed. The second attempt was only successful after NEO rose above the trendline resistance at $9.75. Besides, trading above the 50 SMA is further encouraging the buyers to increase their entries.
Technically, NEO has a bullish inclination. Applied indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) send positive signals. For example, the RSI is almost crossing into the oversold after sustaining a gradual slope upwards. The MACD, on the other hand, is grinding close to the positive region coupled with a positive divergence.
NEO/USD 4-hour chart
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