Key Takeaways
NEO has recently shown signs of a bullish reversal after an extended corrective downtrend, and we saw a 26% recovery from Monday.
The price action tests a crucial resistance zone following a bounce from descending wedge support.
The combination of momentum indicators, Elliott Wave structures, and horizontal levels offers a comprehensive insight into the next possible move.
NEO Price Analysis
The 4-hour chart clearly shows the completion of a WXYXZ complex correction since its $26 high in December.
Monday’s low likely concluded wave Z at a low near $4.30 as we saw an impulsive recovery.
This final leg occurred inside a well-defined falling wedge, a classical reversal pattern.
A bullish breakout appears to be underway, signaling a potential trend reversal.
Notably, the Relative Strength Index (RSI) broke out from oversold territory and printed a bullish divergence just before the price rallied.
It is now reaching the overbought zone, nearing 75%, a sign of caution.
This momentum shift strongly supports the idea of a larger corrective rally or new impulsive wave formation.
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A clear move above $6.51 could open room for a rally toward $10.69 and $11.49 over time, but rejection here could form a lower high and trigger another test of support.
The price is now retesting the $5.45–$6.50 region, which has acted as a key accumulation and resistance zone.
NEO Price Prediction
The 1-hour chart shows a 5-wave impulsive structure near completion within the green resistance zone, with clear wave labeling from (i) to (iii).
The subwaves are clean and consistent with Elliott Wave Theory, suggesting the interaction with the descending trendline around $5.80.
ViewIf this happens, the price will likely enter an A-B-C corrective pattern next, as shown on the chart, to establish the first higher low—a bullish signal.
A projected pullback toward the $5.20–$5.00 region would be expected before the next bullish leg begins—potentially targeting a breakout above the descending trendline.
This correction would allow for the cooling off of RSI, which is now approaching overbought territory again.
If bulls absorb the correction and reclaim $5.60 quickly, the impulse could resume, driving the price above $6.50.
However, failure to hold $5.00 could invalidate the bullish wave count and open the door for a drop below $4, indicating that the complex correction is still developing.
In summary, NEO’s price structure across timeframes strongly suggests a near-term correction within a longer-term bullish reversal setup.
Traders should monitor support zones closely during the pullback for reentry opportunities.
Key Levels to Watch
Resistance Levels:
- $5.45–$6.50 Zone – Current retest zone, key accumulation/resistance.
- $6.51 – Confirmatory breakout level above descending trendline.
- $10.69 and $11.49 – Higher targets if breakout sustains.
Support Levels:
- $5.20–$5.00 Zone – Potential pullback area (ABC correction target).
- $4.30 – Previous wave Z low; critical pivot support.
- Below $4.00 – Invalidation zone for the bullish count.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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