NEO/USD formed a triangle pattern during entire October. It found strong support at $25, that is also a psychological round number. The support has been rejected multiple times after which NEO finally broke above the downtrend trendline and 200 Moving Average, but at the same time, it hasn’t managed to go beyond the $32 resistance.
The corrective wave down followed and the $25 support has been rejected once again. A strong rally up has begun straight after, resulting in a 93% growth against USD, where NEO went from $25 to a new all-time high at $48. While moving up NEO broke the triangle pattern upside target showing that there is more upside potential. Today price has bounced off the previous resistance at $32 which has been acting as a support that has been rejected.
The next upside target and strong resistance for NEO/USD appear to be at $58 where two Fibonacci levels meet. First is the 427.2% applied to the corrective wave after the triangle breakout and second is 161.8% applied to the current corrective wave after the breakout of the upside target. The trend remains bullish and NEO is likely to continue moving up. Although a daily close below $28 should invalidate this outlook.
