Hey everyone, figured I'd switch it up a share a quick analysis on NEO. It has become my second largest holding, thus look at it pretty often. We are coming to an interesting point on the daily chart with it.
Descending Triangle
Looking at the chart of NEO vs USD you see a descending triangle has formed over the past month.
We have support around the $14 mark and a descending trend line that is getting tighter to that line. Sometime over the next week we should see NEO either push past that descending line or it will push lower and test the support line.
I prefer the former as the latter could mean a breach lower which leaves us exposed to downside risk below $8.
NEO News
If you have not already seen it, there has been recent news of NEO working with the Chinese gov't in their quest to on board digital currency as a mainstream payment form.
There really isn't clarity on whether the Chinese gov't plans to implement their own digital currency outright or leverage NEO, but NEO is working with them in some facet.
I only look at that as a positive for NEO.
We shall see what the coming months bring on that front. Sounds like possible news catalysts for big moves though.
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Best Regards,
