NEO/USD: Flimsy

The lack of big push after the recent trend breach is a sign of underlying weakness. Rather than triggering a good recovery move the market remains stuck in the earlier consolidation pattern. We prefer to avoid the market until dynamics become for friendly. Generally a lack of a push after a trend breach leads to an amount of selling pressure. If this leads to a move below 16.52 things could turn ugly, so keep an eye on the market over the coming days and maintain stops – if already long – at max 17.50.

  • Near term trend: neutral
  • Long term trend: neutral
  • Outlook: neutral, uncertain
  • Strategy: avoid
  • Support: 16.52 / 15.50-
  • Resistance: 20.60 / 21.85 / 24.40 / 28.30*
  • Outlook cancelled/neutralized below 17.50

Daily chart NEO/USD

28 September 2018

Although the long-term outlook is still negative, there are some buying opportunities for the near term investor. The trend line of May has been cleared after considerable base building. A recovery towards 28.30 is highly likely. What such a rally will mean for the longer term remains to be seen.

  • Near term trend: positive
  • Long term trend: moderately negative
  • Outlook: good recovery, positive
  • Strategy: trading long-entry
  • Support: 17.50 / 15.40-
  • Resistance: 21.85 / 24.40 / 28.30*
  • Outlook cancelled/neutralized below 17.50

Daily chart NEO/USD