Trade Recommendation: NEO
NEO (NEO/BTC) generated a fresh yearly low of 0.001834 on November 27, 2018. This new low might look bad for the market from a retail investor’s point of view. However, a smart trader looks to enter at these levels. After all, 0.00183 is a key monthly support.
NEO dropped to this area back in December 2017. The rejection of the price below 0.00183 eventually led to the parabolic run that saw the market ascend to as high as 0.0152 on January 30, 2018.
NEO’s revisit to 0.00183 means that the market has given up all the gains of this year’s earlier bull run. More importantly, the bear market filled all gaps in the market. This can be interpreted as the completion of the market cycle, which is good for NEO’s organic and long-term growth. Also, it is good for investors accumulating at these levels.
Technical analysis shows that NEO/Bitcoin is respecting key monthly support of 0.00183. While this is a good start, volume needs to expand soon. The thin volume when the market touched the support on November 27 led to a less than stellar bounce to 0.002019 on November 29. The price action tells us that NEO will likely retest 0.00183 soon. This can be a good opportunity to buy.
The strategy is to buy the retest of 0.00183 support. NEO is oversold in both the weekly and daily timeframes. These conditions should help the market bounce to our initial target of 0.0025. Take that out and 0.003319 should be achievable.
The process may take a month.
Daily Chart of NEO/Bitcoin on Binance
As of this writing, the NEO/Bitcoin pair is trading at 0.00194 on Binance.
Summary of Strategy
Buy: As close to 0.00183 as possible.
Target: 0.0025 and 0.003319.
Disclaimer: The writer owns bitcoin, 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.