Well as Neo' is relatively new it quickly went through or is finishing it's first eight wave cycle. Imagine getting in on Bitcoin during it's first major correction in 2015. Now I caution you, because as you know, I still think according to the charts that the market is still in a correction. Yes bitcoin has defied this but the other blue chip coins have not. What I like about the chart is we completed a overall cycle correction touching the from the start of wave 1. Trading corrections is difficult, and as this is not a liquid market like other more mature markets, price swings can be devastating. This is why you have not seen any swing trades from me in the past couple weeks. A few daytrade setups but no swing trades.
But Neo is starting to consolidate into a nice channel over the past 10 days. This is where I want to caution traders. There is the potential for a correction lower than $13 which will most likely depend on how bitcoin moves. The alt-coin market is still down 20-25% from it's high of 98 billion dollars to 75 billion and falling. So be careful trading here, stops must be really tight. However the 24 bar on the hourly graph does show us some trading opportunities. In addition the current movement is forming a nice rounded bottom pattern. This is often associated with the ole "cup" pattern. This may be telling us the market is finding it's bottom. It's not whip sawing like it was just prior to the consolidation. This is where a pattern actually means something. It's not the pattern that is important but the trend that created it! You could look to trade the cup around $32 for $36-$38 target. Caution though.
I mentioned a week ago that I was adding to NEO' and did so in the $27-$28 range. If you are looking to add and have not, I think this is as good as any to add a small block of what you have allocated, and see if we pullback any further. This is bottom fishing, but I do not want to use all my bait up yet. Even the best EW TA's have difficulty telling if we are in wave 1 of a new cycle, or still in a correction. Wave 3 is the easiest and most profitable wave to trade. I want cash going into wave 3. Remember if I lose 50% now I have to make 100% later just to get back to even. I'll be patient and just add to my core for now.
Long term the future is bright. Wave 1 of Wave III is just around the corner (or started) and I want to be positioned. Wave 1 target $121-$162. That's just wave 1. I want to be prepared to trade wave 3 of III . This is where millionaires will be created from scraps. So right now you shouldn't be thinking of trading for quick gains, you should be looking to add for the long term. $300 loss now = a $6000 lost gain a year from now. Yes some will wish they just bought and held through this correction and be kicking themselves in the ANT'. Which brings us to the last point. The dividend. The dividend is currently paying around 7%. Not a bad return while we wait! I'm normally happy with 3%.
If you are trading the box this is a lower risk op for 3-5%. But keep it tight!
hopefully it helps :D thanks good friend
Thanks for commenting.