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NEM’s XEM Technical Analysis – Price Support in Play – 28/01/19

By:
Bob Mason
Published: Jan 28, 2019, 03:08 UTC

It's deep in the red for NEM's XEM and should sentiment fail to improve, new swing lo levels and sub-$0.050 levels could be on the cards.

NEM’s XEM Technical Analysis – Price Support in Play – 28/01/19

Key Highlights

  • NEM’s XEM slid by 3.77% on Sunday, following on from a 1.12% fall on Saturday, to end the week down by 4.94% at $0.05291.
  • An early morning intraday high $0.05551 saw NEM’s XEM come up short of the first major resistance level at $0.0568 before hitting reverse.
  • NEM’s XEM fell through the first major support level at $0.054 and second major support level at $0.053 to an intraday low and new swing lo $0.05191 before finding support.
  • The extended bearish trend formed at late April’s swing hi $0.46547 remained intact, with NEM’s XEM continuing to fall well short of the 23.6% FIB Retracement Level of $0.1509, following a Sunday’s new swing lo $0.05191.

How to Buy NEM’s XEM

NEM’s XEM Price Support

NEM’s XEM slid by 3.77% on Sunday, following on from a 1.12% fall on Saturday, to end the week down 4.94% to $0.05291.

Tracking the broader market, NEM’s XEM recovered from an early morning dip to $0.054427 to strike an early morning intraday high $0.05551 before hitting reverse. The day’s high came up well short of the first major resistance level at $0.0568, with the start of the day dip testing sentiment early on.

Sliding through the morning and early afternoon, NEM’s XEM fell through the first major support level at $0.054 and second major support level at $0.053 to an intraday low and new swing lo $0.05191 before recovering to $0.053 levels and an afternoon high $0.05361.

Unable to break back through the first major support level, NEM’s XEM fell back through the second major support level to wrap up the day at sub-$0.053 levels for the first time since 29th April 2017.

The extended bearish trend, formed at late April’s swing hi $0.46547, remained firmly intact following a 4th  weekly loss in the last 5, with NEM’s XEM continuing to fall well short of the 23.6 FIB Retracement Level of $0.1495 following Sunday’s new swing lo $0.05191.

At the time of writing, NEM’s XEM was down by 2.37% to $0.05166. A particularly bearish start to the day saw NEM’s XEM slide from a morning high $0.053 to a morning low and new swing lo $0.05143 before steadying. The sell-off saw NEM’s XEM call on support at the day’s first major support level at $0.0514.

For the day ahead, a move back through the morning high $0.0530 to $0.0535 levels would support a run at the first major resistance level at $0.0550 before any pullback. Barring a material shift in sentiment across the broader market, we would expect Sunday’s high $0.05551 to pin NEM’s XEM from more material gains on the day.

Failure to move back through the morning high could see NEM’s XEM pullback deeper into the red. A fall back through the morning low $0.05143 could see NEM’s XEM slide through to sub-0.05 levels to call on support at the second major support level at $0.0498 before any recovery.

XEM/USD 28/01/19 Daily Chart

 

Looking at the Technical Indicators

Major Support Level: $0.0514

Major Resistance Level: $0.0550

Fib 23.6% Retracement Level: $0.1495

Fib 38% Retracement Level: $0.2099

Fib 62% Retracement Level: $0.3075

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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