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Cryptocurrency
by Seth Parker on December 17th, 2018

NEO Analysis – That looks quite promising

Technical part of our feed, starts with the analysis of the NEO, which today is one of the best cryptocurrencies on the market. Previously, this coin was analyzed on the 5th of November, when the price was around the 16.5 USD. Despite maybe one maybe positive factor, our outlook on this instrument was negative. This is what we wrote in the previous piece:

„After this, we should see a further upswing. I would be very careful with that though. In my opinion, whole crypto market is rather weak and the breakout to the downside is still probable. Keep in mind that the price closing a day below the 15 USD (orange), will give us a strong sell signal. „

neo chart

That was a great call, I hope that our readers did not buy NEO at that time after that false upswing. The price went down almost straight away and was declining till 15th of December, when we made new long-term lows around 5.5 USD. From this price, you can see that recent decline was enormous. Now, situation looks a bit better and actually we can see some chances for a reversal. First of all, we came back above the orange horizontal resistance, which makes the previous breakout a false one. What is more, the price came back above the red down trendline, which is a direct signal to go long. Buying cryptos now is still risky but NEO is giving some hopes here. Additionally in this case, the risk to reward ratio may be tempting, if you will consider your stop loss order below the orange line.

By Seth Parker

Seth is a professional trader with over 10 years of experience. He specializes in the technical analysis. His main focus is on the pure Price Action. In his trading, Seth used the trends, supports and resistances and technical formations. Always, the most important thing in his strategy is the money management. Seth reached a proficiency in trading and for the past three years is doing that for a living enjoying the sun and lovely beaches of the Spanish coast.

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