Trade Recommendation: NEO
NEO (NEO/BTC) is a market that’s starting to wake up. As of this writing, the market is up by over 40% from the 2018 low of 0.001672, which was recorded on December 7. In crypto, these gains are not really mind blowing. However, the chart tells us that this coin is just getting started.
Technical analysis shows that NEO/BTC is printing a large symmetrical triangle on the daily chart. The market is primed for a breakout for a couple of reasons.
First, NEO has touched resistance of 0.0024 five times in the last two months. While bears have successfully repelled each attempt, they won’t be able to keep this up for long. Bulls drain the strength of this resistance with each tap. Thus, we expect the next bull attack to finally breach 0.0024.
Second, bulls are strategically extending their territory from the bottom of 0.001672. The diagonal support shows how bulls are establishing a higher low after every pullback. Bulls may have lost several battles but they are winning the war.
Lastly, the market’s volume has significantly increased after hitting the bottom of 0.001672. This indicates that demand for NEO is back.
The strategy is to buy as close to 0.00227 support as possible. If NEO/BTC manages to stay on top of this support, the market will likely generate the momentum to climb to our target of 0.003.
The process may take less than a month.
Daily Chart of NEO/Bitcoin on Binance
As of this writing, the NEO/Bitcoin pair is trading at 0.002348 on Binance.
Summary of Strategy
Buy: As close to 0.00227 as possible.
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.
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