It's a bearish start to the day, with a hold onto $0.08 levels needed to avoid a reversal of Wednesday's gains, investors wary of another sell-off.
NEM’s XEM rose by 8.44% on Wednesday, following on from a 9.92% rally on Tuesday, to end the day at $0.0830.
A bullish start to the day saw NEM’s XEM rally from an intraday low $0.07607 to a mid-morning high $0.08569 before easing back, the early move seeing NEM’s XEM break through the first major resistance level at $0.0811 to come up against the second major resistance level at $0.0857 before falling back to sub-$0.080 levels.
Tracking the broader market through the afternoon, NEM’s XEM broke back through the day’s first major resistance level at $0.0811 and second major resistance level at $0.0857 to a late in the day intraday high $0.08621 before easing back to $0.083 levels by the day’s end.
In spite of a second consecutive day of solid gains, NEM’s XEM continued to fall well short of the 23.6% FIB Retracement Level of $0.1579, reaffirming the extended bearish trend formed at late April’s swing hi $0.46547 and 25th November’s swing low $0.06284.
At the time of writing, NEM’s XEM was down 2.86% to $0.08062, with a bearish start to the day seeing NEM’s XEM fall from a start of a day morning high $0.08419 to a morning low $0.07923 before finding support to move back through to $0.080 levels. The early moves saw NEM’s XEM come within range of the first major support level at $0.0786, while falling short of the first major resistance level at $0.0868.
For the day ahead, a move back through $0.0824 would support another run at the first major resistance level at $0.0868 to bring $0.090 levels into play, though sentiment across the broader market will need to materially improve to support a break out from the first major resistance level later in the day, the current pullback coming off the back of late Wednesday’s reversal.
Failure to move back through $0.0824 could see NEM’s XEM pullback deeper into the red, with a fall through the morning low $0.07923 bringing the day’s first major support level at $0.0786 into play, which may not be enough should sentiment fail to improve, the day’s second major support level at $0.0743 in play in the event of another meltdown.
Major Support Level: $0.0786
Major Resistance Level: $0.0868
Fib 23.6% Retracement Level: $0.1579
Fib 38% Retracement Level: $0.2166
Fib 62% Retracement Level: $0.3116
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.