Neo has finished 3 Elliott waves and is in the mist of completing the 4th wave. Currently, the price is bouncing from the support of a rising channel and 0.382 fib level (not shown in chart) after forming an ABC correction. There is a possibility that the 4th wave correction will extend longer as it does seem a bit short. If a longer correction occurs, the most ideal scenario is to form a rising triangle while staying in the channel. If the price, breaks below the channel, there is still strong support. The $8.45 to $8.70 is the most notable support region as it is the top of blue wave 1 and the bottom of purple wave 4. According to this wave count, Neo should at the worst bounce off that region with a wick. Any break of the support or consolidation within that region would clearly invalidate this count.
The target is $10.80 as that is the one to one extension of a previous move up.
However, not all the indicators signal bullishness. In particular, the RSI is displaying bearish divergence, and the volume is declining. The price also just broke from a rising wedge.
The target is $10.80 as that is the one to one extension of a previous move up.
However, not all the indicators signal bullishness. In particular, the RSI is displaying bearish divergence, and the volume is declining. The price also just broke from a rising wedge.
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