NEM Technical Analysis – Breaks Through Resistance Levels to Buck the Trend 20/03/2018

Key Highlights

• NEM’s XEM gained 2.17% on Monday, following Sunday’s 2.41% gain.
• A bullish trend formed from Sunday’s swing low $0.21488 and remains intact.
• Monday’s intraday high $0.31817 tested the day’s first major resistance level, while support levels were untested.

---

How to Buy NEM: The Complete Guide

---

NEM’s Price Resistance

NEM’s XEM saw last week’s bearish trend reverse late in the day on Sunday, which supported minor gains through Monday, as sentiment towards this week’s G20 eased following Mark Carney’s comments on the eve of the G20 on Sunday.

A Monday intraday high $0.31817 tested the day’s first major resistance level of $0.31033 through the middle part of the day, before pulling back to end the day at $0.28863, steering clear of the day’s first major support level of $0.23701.

Of significance through the day was NEM XEM’s hold above the day’s 23.6% FIB Retracement Level of $0.2772, with the jittery markets seeing support levels falter on numerous occasions in recent days.

Following Monday’s softer gains, relative to its peers, NEM’s XEM has certainly bucked the trend this morning, up 9.83% to $0.32493, with the rest of the crypto majors languishing in the red at the time of writing.

This morning’s intraday high $0.3493 broke through the day’s first major resistance level of $0.31774 and 2^nd resistance level of $0.34685 with relative ease, NEM investors seemingly unconcerned with the G20 Summit and the possibility of negative news hitting the wires.

It wasn’t all plain sailing through the early part of the morning, however, with NEM’s XEM sliding to an intraday low $0.2654, falling through the day’s 23.6% FIB Retracement Level of $0.2938 and 38.2% FIB Retracement Level of $0.2787 before buyer appetite kicked in.

For the day ahead, while the rest of the majors struggle in the red, a move back through to today’s intraday high $0.355 would support a run at $0.40 levels and the day’s 3^rd resistance level of $0.40464, with XEM’s previous visit to $0.4 levels being last Thursday.

Failure to break through to $0.40 levels could see investors look to lock in profits that would likely lead to a pullback to sub-$0.30 levels to test buyer appetite at the day’s 23.6% FIB Retracement Level of $0.2938.

While investors are responding to the progress made by the NEM team, any pullback would likely be attributed to negative regulatory news, with NEM’s XEM having frequently bucked the trend in the cryptomarkets in recent weeks.

NEM’s progress in the gaming industry has certainly contributed to recent rallies and this morning’s bounce was likely in response to the announcement of a new partnership NEM-Xhai studio partnership, Xhai a Malaysian company involved in delivering innovation in the mobile gaming industry.

Looking at the Technical Indicators

• Major Support Level: $0.25995
• Major Resistance Level: $0.31774
• Fib 23.6% Retracement Level: $0.2938
• Fib 38% Retracement Level: $0.2787
• Fib 62% Retracement Level: $0.2543