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.
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.
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.
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
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.