NEOUSD finds buyers at key support level
NEO/US Dollar Index (NEOUSD) Technical Analysis Report for Jan 12, 2019 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, NEOUSD finished Saturday at 7.81 losing $0.14 (-1.76%).
Daily Candlestick Chart (NEOUSD as at Jan 12, 2019):
Saturday's trading range has been $0.34 (4.25%), that's far below the last trading month's daily average range of $0.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NEOUSD.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and two bearish patterns, the Bearish Short Candle and the Black Candle. The last time a Bullish Hikkake Pattern showed up on December 31, 2018, NEOUSD gained 5.74% on the following trading day.
After trading down to 7.67 earlier during the day, NEO/USD bounced off the key technical support level at 7.72 (S1). The failure to close below the support could increase that levels significance as support going forward. NEO found buyers again today around 7.67 for the third trading day in a row after having found demand at 7.81 in the previous session and at 7.72 two days ago.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for NEO/USD. Out of 17 times, NEOUSD closed lower 70.59% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 52.94% with an average market move of -3.31%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are BCHUSD gaining 3.0% and ETCUSD closing 1.55% higher. On the flipside the worst performers have been ETHUSD closing -0.72% lower and BTCUSD losing -0.05%. Looking at the other Minor Cryptocurrencies, the winners of the day have been HSRBTC surging 48.59% and LSKUSD closing 6.56% higher. The worst performers of the day have been TRXUSD tanking -7.9% and TRXBTC closing -6.57% lower. Read more