Trade Recommendation: NEO
Like so many of the crypto cousins, NEO has a similar chart pattern on the Daily. Much of the technical setup for the NEOUSDT pair is in line with the other coins. However, it’s important to identify the key levels of support and resistance to discern entry and exit points and our risk reward potential depending on the market moves.
Volume and volatility have reduced quit a bit recently across Cryptoland so all the more reason we need to know what to do when key levels are breached such as our Monthly Pivot Range.
The key resistance is our Monthly Pivot Range high, which the price will need to close above in order for the bias to turn bullish.
The Daily Pivot Moving Average appears about to turn upward (14 day to 30 day: red, yellow) and may very well achieve a bullish crossover. Be mindful of the swing low low as this is key support, that if broken, would confirm a continuation of the bearish trend.
This is a longer term trade with which we can be conservatively patient and wait until the price closes above the Monthly Pivot Range high before entering long. If the market unfolds with this scenario, then the setup will be a very good risk reward trade.
The action to take is to buy when the price closes above the Monthly Pivot Range high level and place the stop loss below the Monthly Pivot Range low. Place the profit targets as stated.
Entry Price: 68.750
Stop Loss: 58.000
Profit Targets: First profit target 92.750. Second profit target 110.300. Once price reaches first profit target bring the stop loss to breakeven (entry price). Then as price moves higher trail a stop loss 7.500 points back until 2nd profit target is reached or stopped out.
Disclaimer: The writer owns Litecoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.