NEO is currently in a bull flag with a current week candle below the weekly level. The move up measured with the Fibonacci shows us that the price is currently in the golden pocket.
The best thing would be if the week candle were to close above 14.65 but if that is going to work....ik doubts it. As long as we do not close below $9.60 on the daily.
The ema's are slowly closing but are bearishly crossed and offer both support and resistance to the price. The rsi is clearly encountering resistance from the ema and has also plunged below the 50 line this week on its way to the oversold area.
After it broke the downtrend line about a month ago it has not been able to hold the higher high that has been set. Yesterday there is a lower low printed on the chart. I have to say that this has not yet been confirmed and could be even lower.
The price is at least in a local support zone but as you can see on the VPVR on the right side of the chart there is little support compared to the weekly level in orange. When the yellow block can no longer offer support we will quickly go to the 9.60 dollar.
As far as the indicators are concerned we see the ema55 and 100 standing pretty close together and there seems to be a bearish crossover. This would not be very favorable, the ema's are already moving in bullish mode from May 2020.
On the lower timeframe we can't find much new information since the licorice is only recently released. However, here you can clearly see how it moves in the bull flag. On the VPVR it can also be clearly seen here that the major support is just below the yellow support block and that the major resistance has confluence with the trend line of the bull flag.
Conclusion:
Right now I'm giving just a little more odds to the bulls. At the 4h there should remain above 11.20 but the daily should close in the yellow block but rather above it. If that doesn't work then I expect a drop to the next weekly support zone at 9.60 dollar. Before we can really look up again the 14.65 dollar has to be flipped.
Despite this weird year and the accompanying measures, I would like to wish you all a very happy holiday. Enjoy each other, the food and drinks!
Also, If you are interested in trading, I would suggest you try out Coingrats free Discord server where we discuss the market and share interesting content. We have also have a free premium section where we share trading signals for Bybit. More info in our Discord server
