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NEM’s XEM Technical Analysis – Resistance Levels in Play – 27/03/19

By:
Bob Mason
Published: Mar 27, 2019, 05:20 GMT+00:00

NEM's XEM makes strong gains early on and could be eyeing $0.052 levels this week as the bears look to take a firmer grip.

Ripple, Dash coin, Bitcoin, Monero and Ethereum

Key Highlights

  • NEM’s XEM slipped by 0.08% on Tuesday. Following on from a 4.51% slide on Monday, NEM’s XEM ended the day at $0.04963.
  • An early morning intraday high $0.05040 saw NEM’s XEM come up against the first major resistance level at $0.0504 before hitting reverse.
  • An early afternoon intraday low $0.04868 saw NEM’s XEM fall through the first major support level at $0.0491 before steadying.
  • The extended bearish trend formed at late April’s swing hi $0.46547 remained intact. NEM’s XEM continued to fall well short of the 23.6% FIB Retracement Level of $0.1359 following 6th February’s new swing lo $0.03405.

How to Buy NEM’s XEM

NEM’s XEM Price Support

NEM’s XEM slipped by 0.08% on Tuesday. Following on from a 4.51% slide on Monday, NEM’s XEM ended the day at $0.04963.

A relatively range-bound start to the day saw NEM’s XEM rise to an early intraday high $0.0504 before hitting reverse.

Coming up against the first major resistance level at $0.0504, NEM’s XEM fell to an early afternoon intraday low $0.04859. The pullback saw NEM’s XEM slide through the first major support level at $0.0491 before recovering.

Finding support at the second major support level at $0.0485, NEM’s XEM managed to recover to $0.049 levels by the day’s end.

The bearish start to the week comes off the back of 7 consecutive weeks in the green for NEM’s XEM.

The extended bearish trend, formed at late April’s swing hi $0.46547, remained firmly intact in spite of the 7 weeks in the green. NEM’s XEM continued to fall well short of the 23.6 FIB Retracement Level of $0.1359 following 6th February’s new swing lo $0.03405.

At the time of writing, NEM’s XEM was by 2.45% to $0.05085. Tracking the broader market, NEM’s XEM rallied from a morning low $0.04957 to a morning high $0.051028. Steering clear of the first major support level at $0.0487, NEM’s XEM broke through the first major resistance level at $0.0505.

While breaking through to $0.0510 levels, NEM’s XEM came up short of the second major resistance level at $0.0514 before easing back.

XEM/USD 27/03/19 Daily Chart

For the day ahead

A hold onto $0.050 levels through the morning would support another run at the second major resistance level at $0.0514. The broader market would need to avoid a pullback for NEM’s XEM to move back through to $0.051 levels, however. In the event of an extended rally through the day, the second major resistance level would likely pin NEM’s XEM back from $0.0515 levels.

Failure to hold onto $0.050 levels could see NEM’s XEM give up the early morning gains. A pullback through the morning low $0.04957 would bring the first major support level at $0.0487 into play. Barring a crypto sell-off, however, we would expect NEM’s XEM to steer clear of sub-$0.049 support levels on the day.

Looking at the Technical Indicators

Major Support Level: $0.0487

Major Resistance Level: $0.0505

23.6% FIB Retracement Level: $0.1359

38.2% FIB Retracement Level: $0.1988

62% FIB Retracement Level: $0.3007

About the Author

Bob Masonauthor

With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.

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