Neo - All Time High in Sight

2 Mar 2018

It looks like NEO is following Bitcoin’s price action here. The price seems to be finding support along the downtrend channel (dark red dashed line) and it’s also approaching a short term support level from the 06/02 and 25/02 lows. From my wave count, it looks like we could have completed wave ii of wave 3 of larger degree, which usually leads to a large impulse defining wave iii of 3. Likewise to Bitcoin, we just need the support to hold above the downtrend channel. I think the short-term support adds strength to this position and should give NEO the support it needs to go on towards the resistance levels that I’ve laid out. I have started my trade with 2/3 of my total position @ $129 and add on the remaining 1/3 after further confirmation, a break of $140. My target for this trade is $188 (46.8%).
If the support here cannot be held then we could be expanding wave 2 down towards the long term support line. Therefore I would place my stop at $113 (11.72%).
Confidence Rating: 7/10

4 Mar 2018

Catatan

We have nearly been stopped out by this trade. As I do not place stop orders due to the volatility of crypto, I will be making sure to keep a close eye on this market. We should find support along the blue support line. If it breaks below this then I will exit this trade.

6 Mar 2018

Catatan

I have exited this trade @ $108 pretty much as soon as I got up this morning (maybe I should start using stops!)

Previously, I thought we were in subwave ii of the broader wave 1 but in light of recent price action my wave count has changed as shown below. I have instead plotted wave 5 of wave (1) finishing at 20/02 as it seems like the momentum from the bullish pressure eased off here. After this we then rallied once more however I think this is due to the fact that the whole crypto market surged at this point as, since the bounce, NEO has shown weakness.

This leads me to believe we are in an expanded flat correction and I have labelled the 0.5 retracement as a key reversal area. Until I see a reversal, I will not be placing a trade. I'd like to give the market time to give us a better idea of where it's heading. Let's see how this pans out!