Neo 27/04/18

Hi,

I'm trying a different coin today! Neo, a relatively new to the scene coin blew up this past year (it was roughly $0.30 this time lat year), dubbed as the "Chinese Ethereum" I think this project has great potential in the future. As always this post is for educational purposes only and I am not a financial advisor.

In this blog I will look at both the bullish and bearish view and also past price movements.

Bullish view:

The bullish view relies on the correction being finished, shown in the picture below

We can see Neo perfectly bounced off the 0.782 retracement of zero and the ATH. This is a very promising sign, the 0.782 retracement has been the favourite for lots of alt coins recently. We have completed a simple ABC correction with a possible extended C wave. If this is the case, we have completed our first wave up and are on an up trend. We need a break of the descending channel to turn bull, if a strong breakout occurs it is most likely on its way up.

If we lower the time frame to 4 hours we can see that Neo needs to correct a bit to complete the second wave of the impulse wave up.

Second waves are normally a deep retracement off the first, a bounce off the golden zone or the 0.786 would be reassuring. The fib numbers on the left is the retracement from the swing low ($43) to the swing high ($85). The fib numbers on the right is is the extension from the swing high, down to the recent low ($69) and then back up to the highest price Neo has just reached after the recent low ($77). This second wave NEEDS to hold to remain bullish, if it breaks down it will remain bearish.

Bearish view:

For the bearish view, Neo has one more push downwards. I have found two possible graphs that fit in with the bearish trend. The first is a falling wedge

We can see that it needs to complete the final 'E' wave.

The other is a double three correction

I'm not sure which path I am most convinced by, both lead downwards with the double three being more likely to go lower. If it does retrace further it is most likely to bounce off of the 0.854 so definitely watch closely.

Finally, I would also like to look back to the August/September period of 2017, the most recent big retracement of Neo:

Looks familiar right? If history is to repeat itself it should complete one more push downwards.

If you think Neo has great potential, you should definitely also invest in gas (Neo's utility token), gas' price follows Neo's relatively closely.