Been a busy week in the crypto markets! Many major breakouts in the past few weeks in BTC, ETH, EOS, LTC, and many other alts. It has been a great period for day trades and swing trades.
NEO has been our radar for a while. Unlike BTC, ETH, and other major altcoins, NEO has yet to really get some legs and breakout. You can see on its daily below that it is poised nicely for a breakout at $14:
NEO Breakout on Daily
NEO has been consolidating nicely since April under the $14 resistance level. A lot of the chasers in early April were shaken out by the deep pullback after that big push. After the deep pullback, we got another push, testing the $14 resistance level from the first run in early April.
The second test of $14 and the gentle pullback after put NEO on my radar In mid-May. We started forming a nice flag over $10, indicating that buyers were preparing to enter the market. I was on watch for a swing entry to anticipate the daily break out.
NEO Intraday
Here are screenshots of my entry and exit called out in our Cryptostreet chatroom:
The trade idea was for a swing trade. I was not expecting an immediate resolution. I know a couple of traders who were shaken out and missed the move. When trading cryptos it essential to have wide stops, and to stick to them. I sold half into the recent push towards the breakout area, just in case the break failed and completely reversed.
Just because a crypto dips against your position does NOT mean your trade thesis is invalid. This trade is a great example of the importance of sticking to your trade thesis despite adverse price action. Cryptos don’t just move straight up or straight down, and big flushes against your position are not uncommon.
You can see on the daily that we didn’t get any follow through on the last push through $14. It looks like it was just a shakeout, as now we are grinding back up through the breakout level. I am still holding half my position for $15+ I think there is still more upside coming this week!
Cryptostreet
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Kunal Desai is an American day trader (stocks and cryptos) and founder of Bulls on Wall Street and Bulls on Crypto Street, two online trading academies and informational publications. He has been featured in many high profile publications like Inc, Forbes, Buzzfeed, and Fortune. He has spoke at trading and business events all across the World.