NEO/USD Long-term Trend: Bullish
Supply zone: $20.00, $30.00, $40.00
Demand zone: $10.00, $05.00, $01.00
The long-term outlook for NEO is a bullish trend. The last strong bearish pressure that started on 4th September at $25.30 in the supply area after bullish rejection at the 50-EMA came to a reasonable end on 31st October. This was when NEOUSD dropped to $14.68 in the critical demand area. The daily candle closed as a bullish pinbar a good indication of a trend reversal and subsequent bulls return.
The large bullish engulfing candle at $16.02 formed on 4th November provided a strong confirmation to the bulls takeover. NEOUSD rose to $17.21 in the supply area breaking the 10-EMA that served as a strong resistance against price upward movement. although it was initially broken on 2nd November when the price was up at $16.39.
The price is above the 10-EMA and the stochastic oscillator is at 74% with its signal pointing up an indication that momentum is to the upside. The bullish pressure may break the 50-EMA in the supply area and take NEOUSD to a new high in the long-term. $20.00 may be the initial bulls’ target.
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