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NEO Technical Analysis: Ontology’ ONT $40 million Air Drop Back Firing
Undoubtedly, NEO is China’s flagship project and is an important project. Despite that big tag, NEO is on a slide and so far, sellers are aiming for $25 if not for $12 assuming prices break from this horizontal consolidation. At the moment, Of course, the effect of sellers is clear for everyone and while it has been the case for the last two months or so, we must also realize that NEO is trending at a around a key support line at $25.That’s not all, in the last four weeks or so, prices have been moving within a $15 range with limits at $40, a main resistance line.Remember, all this is happening despite those positive movements by week ending July 8 when we had a nice three bar bullish reversal pattern, the Evening Star right at the support line.Daily ChartNEO Daily Chart by Trading ViewHere is the thing: Conservatives can avoid taking trades until we see sellers testing $25 or break above $40. On the other side though, risk-off traders can begin initiating shorts at current spot rates with stops at July 10 highs at $35. The reason behind this decision is clear.NEO is trading with a bear break out pattern. At the moment, the retest phase is over after failure of buyers to push above above $40. So, cognizant of the pattern we are in, this is the trend resumption phase and it is likely that bears might break below $25 and drive prices towards our ultimate targets of $12.Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.
Author: Dalmas Ngetich
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