- NEO/USD breaks a critical near-term support, neckline of a head and shoulders pattern formation.
- Next downside target for NEO/USD seen at $35.75, the 13th June low and touted demand zone.
The NEO price was seen down over 3% on Thursday, one of the session’s underperformers. This comes as the cooling in prices across the market remains. Given a recent breakout seen to the downside, from a key supporting area, this could invite some decent selling in the near-term for NEO.
Over the past five sessions now, NEO/USD has been forming a head and shoulders pattern, as seen via the 60-minute chart view. The right shoulder completed its shape during Thursday’s session, with most recently a break being seen from the supporting neckline, which retested and has now continued its move south, playing to the textbook.
Due to the completion of the mentioned pattern, it is now somewhat inviting to some further selling pressure from the market bears. Looking to the downside, eyes are on the 13th June low at $35.75, where a touted demand zone also tracks. On the flipside, resistance is seen underneath the broken neckline at $38.05, then should the price push back above, $38.75, 50 and 100MAs.
NEO/USD 60-minute chart
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