Trade Recommendation: Neoscoin

The Neoscoin/Bitcoin (NEOS/BTC) showed signs of bullishness on December 29, 2017 when it took out resistance of 0.00065. The surge on that day was so strong that the pair went as high as 0.00136314. At this price level, the market flashed overbought readings. In addition, the market has grown by almost 110%. Breakout players were more than happy to take profits.

Faced with heavy selling pressure, the market plunged to as low as 0.00072312 on January 6, 2018. Bottom pickers entered the market and pushed it to 0.00117825 on January 8. However, 0.00117825 is a lower high and lower highs kill market momentums. Since then, NEOS/BTC has been dropping, and that offers you a chance to pick the bottom.

Technical analysis reveal that Neoscoin/Bitcoin has taken out critical support of 0.00065. Below 0.00065, the next firm support is 0.0003. In addition, the market is on track to flash oversold signals once it touches 0.0003. That could be the spark that can take NEOS/BTC to our target.

The strategy is to buy as close to 0.0003 as possible. If the market continues to respect this level, it might create a new base before it can restart its climb to 0.00065. The process may take a month.

Daily Chart of Neoscoin/Bitcoin on Poloniex

As of this writing, the Neoscoin/Bitcoin pair is trading at 0.00037066 on Poloniex.

Summary of Strategy

Buy: As close to 0.0003 as possible.

Target: 0.00065

Stop:  0.00027

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.