Bitcoin and Bitcoin Cash have been going up and down for some time now, but - as you might have noticed - many other coins are 'moving' within certain bounds. Can we identify investing opportunities for Ethereum and NEO using technical analysis?
Ethereum
After an extremely volatile period of two months, in which Ethereum rose from $300 to almost $400, dropped to $200 and recovered to $300. The past one and a half month did not have large price changes and especially the support barrier of $290 appears to be strong. The barrier has been crossed multiple times, but never below $270 and always recovery within one day.
I think there is a resistance area between $330 and $350, once it surpasses $350 I suspect the rise to continue and we might see $400 soon. Even though Ethereum had some bad press last weeks, there have not been large price drops. In combination with a solid support area, we can certainly state that Ethereum's fundamentals are strong and a bullish period is about to start. So, even if the price goes down and hits $290 again, it might be a good idea to buy in, because the upward potential is larger than the downward risk.
NEO
NEO is moving quickly between support ($26) and resistance ($31). It is easy to take advantage of these fluctuations, but you have to be willing to take the risk. There is a buy opportunity if the price hits $26; in this case I would recommend a target price of $29. It is also wise to add a stop-loss at $23, because NEO is more volatile than, for example, Ethereum. NEO can easily drop to, say, $18 or jump to over $40.
Similarly, we can short NEO once it hits $31. Again, I would use ranges of $3 (target: $28, stop-loss: $34). In both cases I would stay away from steady increasing/decreasing patterns. The chance of a price correction appears is certainly higher after sudden, large price movements. Given the current price pattern, I would discourage you to short NEO if it continues to climb to $31, but my advice is to buy if the price quickly drops to $26.
The method described above has worked pretty well for me. I have also tried it with Ethereum, but it is less usual as it has - in contrast with NEO - less clear boundaries and moves 'slower'. Please share your opinions and give tips how I could improve my analysis. Also, upvotes are always nice!