NEOUSD runs into sellers again around 18.33
NEO/US Dollar Index (NEOUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
NEOUSD ended Sunday at 17.18 tanking $1.15 (-6.27%) on high volume. This is the biggest single-day loss in over a month. 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.
Daily Candlestick Chart (NEOUSD as at Nov 22, 2020):
Sunday's trading range has been $1.19 (6.49%), that's slightly above the last trading month's daily average range of $1.09. Weekly volatility is also higher, being above 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 Belt-hold and the Black Candle which are both known as bearish patterns.
NEO/USD closed back below the 100-day moving average at 17.93. When this moving average was crossed below the last time on October 27th, NEOUSD lost -6.71% on the following trading day. After having been unable to move above 18.34 in the prior session, the cryptocurrency ran into sellers again around the same price level today, missing to move higher than 18.33.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 15.70.
NEO shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for NEO/USD. Out of 69 times, NEOUSD closed higher 69.57% 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 55.07% with an average market move of 3.11%.