NEOUSD Long-term Trend: Bearish
Supply zone: $70.00, $80.00, $90.00
Demand zone: $40.00, $30.00, $20.00
The bears continue to dominate Neo’s long-term outlook. Their supremacy over the bulls was clear when they hit their price target of $50.00 at the demand area, which was predicted in last week’s long-term Neo price analysis. The price is now below the 3 EMAs crossover which means more of seller presence and pressure.
The 3 EMAs are fanned apart which connotes strength in the trend’s context and in this case the downtrend. Neo has created another flag formation as you can see from the chart. Each time we have this scenario the ride to the south is always preferred, and we may likely see it repeat.
A bearish railroad formation and a nice flag below the 12-day EMA confirm the downward momentum as bearish pressure increases. The stochastic oscillator is in the oversold region with its signal pointing down. This signifies further downward momentum. Minor pullbacks by the bulls may occur but these are market corrections for the downtrend’s continuation. $45.00 may be the bears’ target in the long-term.