NEOUSD dominated by bears dragging the market lower throughout the day
NEO/US Dollar Index (NEOUSD) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, NEOUSD finished the week -3.26% lower at 9.78 after losing $0.18 (-1.81%) today on high volume. The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (NEOUSD as at Jul 03, 2020):
Friday's trading range has been $0.21 (2.11%), that's far below the last trading month's daily average range of $0.49. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NEOUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
The market closed back below the 200-day moving average at 9.96 for the first time since June 27th. When this moving average was crossed below the last time on June 27th, NEOUSD actually gained 3.59% on the following trading day. After having been unable to move lower than 9.74 in the prior session, NEO found buyers again around the same price level today at 9.76.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could accelerate should prices move above the nearby swing high at 10.32 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 9.74 where further sell stops might get activated.
Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 200" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for NEO/USD. Out of 20 times, NEOUSD closed higher 65.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.00% with an average market move of 1.25%.
With five out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are EOSUSD gaining 2.54% and XRPUSD closing 0.86% higher. On the flipside the worst performers have been ETHUSD closing -0.59% lower and BTCUSD losing -0.29%. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 7.62% and ICXBTC closing 6.57% higher. The worst performers of the day have been BTGUSD tanking -8.19% and BTGBTC closing -5.0% lower. Read more