NEO price analysis: bearish reversal candle forms
17:08, 20 August 2020
NEO has rallied to a fresh 2020 trading high this week, with the cryptocurrency breaking past the March 2020 high, and reaching the $17.50 area.
NEO technical analysis shows that a bearish reversal candle on the daily time frame is warning of a possible pullback.
NEO medium-term price trend
NEO has turned bullish over the medium-term, following the recent breakout rally towards the $17.50 area.
NEO price analysis shows that a bearish reversal candle has formed on the daily time frame, and may be signalling a corrective pullback.
NEO recently performed a breakout above multi-year trendline resistance, around the $13 area last week, cementing the medium-term bulls’ case for the cryptocurrency.
The daily time frame shows that a technical pullback from current levels should find strong support from the $15 or the former breakout zone, around the $13 area.
Medium-term analysis shows that the $20 level remains the wider medium-term bullish target for NEO/USD bulls.
Traders should note that a major bullish reversal pattern will form if the cryptocurrency reaches the $20 level.
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NEO short-term price trend
NEO technical analysis over the short term shows that the cryptocurrency has a bullish bias while the price trades above the $15 level.
The one-hour time frame shows that a bearish head-and-shoulders pattern has formed, following the recent rejection from the $17.50 level.
According to the size of the bearish reversal pattern the NEO/USD pair could fall towards the $13.50 level if neckline support around the $15.50 level is broken.
Short-term traders may turn bearish if the NEO/USD pair fails to make new higher highs, and falls under the $15.50 level.
NEO technical summary
NEO technical analysis shows that a bearish reversal pattern is warning that the NEO/USD pair could fall towards the $14.50 to $13.50 support area.