- NEO continues to sustain an uptrend within a flag pattern.
- The support at $9.5 must be defended to avoid extending the lower leg towards $9.0.
NEO is among the leading losers on the last day of November’s trading. The recovery staged from $8.5 lows failed to breach the $10 stubborn resistance. Meanwhile, the ongoing correction is testing the short term support at $9.5.
The 50 Simple Moving Average the 4-hour chart is offering support marginally below $9.5. If NEO bulls manage to clear the resistance at $10, correction towards $15 are likely to come into play.
The Relative Strength Index is above average. If it nurtures a gradual slope towards 70, then NEO could have a fighting chance at $10 and avert declines to $9. On the flip side, the flag pattern suggests that NEO could indeed break down to $9.0 or $8.5.