NEOUSD runs into sellers around 17.28 for the third day in a row
NEO/US Dollar Index (NEOUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
NEOUSD finished Saturday at 17.20 gaining $0.15 (0.88%) on high volume. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (NEOUSD as at Oct 17, 2020):
Saturday's trading range has been $0.27 (1.59%), that's far below the last trading month's daily average range of $0.98. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for NEOUSD. Prices continued to consolidate within a tight trading range between 16.80 and 17.35 where it has been caught now for the last three trading days.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on September 10th, NEOUSD gained 10.41% on the following trading day.
Prices are trading close to the key technical resistance level at 17.55 (R1). The market ran into sellers again today around 17.28 for the third trading day in a row after having found sellers at 17.33 in the previous session and at 17.35 two days ago.
NEO/USD shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Buying could accelerate should prices move above the nearby swing high at 18.53 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 16.80 where further sell stops might get activated. Further selling could move prices lower should the market test September's nearby low at 15.97.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for NEO/USD. Out of 46 times, NEOUSD closed lower 65.22% 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 six trading days, showing a win rate of 58.70% with an average market move of -0.85%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more