NEOUSD breaks below Thursday's low
NEO/US Dollar Index (NEOUSD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
NEOUSD ended the week 3.96% higher at 18.12 after losing $0.56 (-3.0%) today. Closing below Thursday's low at 18.28, the market confirmed its breakout through the prior session low after trading up to $0.46 below it intraday.
Daily Candlestick Chart (NEOUSD as at Oct 23, 2020):
Friday's trading range has been $0.86 (4.6%), that's slightly above the last trading month's daily average range of $0.85. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for NEOUSD.
In spite of a strong opening NEO closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on Tuesday, NEOUSD actually gained 8.19% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 17.46 (S1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 17.52.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 19.18 where further buy stops could get triggered. Further selling might move prices lower should the market test September's nearby low at 15.97.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed below the upper Bollinger Band" stand out. Its common bearish interpretation has been confirmed for NEO/USD. Out of 49 times, NEOUSD closed lower 59.18% of the time on the next trading day after the market condition occurred.