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NEO/USD Elliott Wave analysis [Video]

NEO/USD Elliott Wave analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Zigzag.

Position: Wave ((C)).

Direction next higher degrees: Wave Y.

Wave cancel invalid level: $4.36.

Trading strategy overview: After declining from around $22 to the ~$4.50 area, NEO/USD is now showing signs of having completed a major corrective wave. This sets the stage for a potential start of the long-anticipated wave 3.

 Key resistance – Bullish confirmation level:

  • Around $5.75.

  • A break above this level may confirm the beginning of wave 3.

 Key support – Invalidation level:

  • Below $4.36.

  • A drop under this level invalidates the current wave structure.

 Wave 3 targets:

  • Potential upside targets include $7.50 and $8.77 (aligned with the prior wave IV peak).

Trading strategy:

  • For swing traders:

    • If price stabilizes within the support zone and remains above $5.00, consider entering in anticipation of wave 3.

  • Risk management:

    • A break below $4.36 suggests a failed structure and will require a reassessment of the entire wave count.

NEO/USD Elliott Wave analysis

Function: Counter Trend.

Mode: Corrective.

Structure: Zigzag.

Position: Wave ((C)).

Direction next higher degrees: Wave Y.

Wave cancel invalid level: $4.36.

The H4 chart reinforces the daily analysis, highlighting that the corrective structure may be complete, and wave 3 could be initiating. The same key support and resistance levels apply, with identical short-term trading and risk strategies for validation.

NEO/USD Elliott Wave analysis [Video]

Author

Peter Mathers

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

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