NEOUSD breaks below Saturday's low
NEO/US Dollar Index (NEOUSD) Technical Analysis Report for Oct 25, 2020 | by Techniquant Editorial Team
NEOUSD ended Sunday at 17.88 losing $0.44 (-2.4%). Closing below Saturday's low at 18.01, the market confirmed its breakout through the previous session low after trading up to $0.33 below it intraday.
Daily Candlestick Chart (NEOUSD as at Oct 25, 2020):
Sunday's trading range has been $0.81 (4.42%), that's slightly below the last trading month's daily average range of $0.84. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly lower than usual for NEOUSD.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. The last time this happened on October 20th, NEOUSD actually gained 8.19% on the following trading day. Regardless of a strong opening the cryptocurrency closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 17.55 (S1). After having been unable to move above 18.48 in the previous session, NEO/USD ran into sellers again around the same price level today, missing to move higher than 18.49.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Further selling could 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 OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for NEO/USD. Out of 51 times, NEOUSD closed higher 56.86% 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 60.78% with an average market move of 4.33%.