NEOUSD still stuck within tight trading range
NEO/US Dollar Index (NEOUSD) Technical Analysis Report for Jul 05, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, NEOUSD ended Sunday at 10.10 gaining $0.08 (0.8%). Trading up to $0.36 lower after the open, NEO/USD managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Saturday's high at 10.09, NEO confirmed its breakout through the prior session high after trading up to $0.05 above it intraday.
Daily Candlestick Chart (NEOUSD as at Jul 05, 2020):
Sunday's trading range has been $0.48 (4.79%), that's slightly above the last trading month's daily average range of $0.45. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for NEOUSD. Prices continued to consolidate within a tight trading range between 9.66 and 10.32 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on Wednesday, NEOUSD actually lost -1.87% on the following trading day.
After trading down to 9.66 earlier during the day, the market bounced off the key technical support level at 9.89 (S1). The failure to close below the support might increase that levels significance as support going forward. After having been unable to move above 10.09 in the previous session, the cryptocurrency ran into sellers again around the same price level today, failing to move higher than 10.14.
Though NEOUSD is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 10.32 where further buy stops could get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for NEO/USD. Out of 40 times, NEOUSD closed lower 62.50% 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 55.00% with an average market move of -2.94%.
With seven out of the seven Major Cryptocurrencies closing lower today, the ones that stand out on the negative side are EOSUSD losing -2.03% and BCHUSD closing -1.19% lower. None of the markets managed to end the day in the green. Looking at the other Minor Cryptocurrencies, the winners of the day have been VETBTC surging 15.33% and ELFBTC closing 6.07% higher. The worst performers of the day have been LTCCNY tanking -6.04% and BTCCNY closing -5.57% lower. Read more