It's a particularly bearish start to the day. With support levels already being tested, a rebound looks unlikely...
NEM’s XEM fell by 2.21% on Monday, following on from a 26.7% slide last week. The decline left NEM’s XEM at $0.03805 by the day’s end.
A relatively choppy day saw NEM’s XEM strike a late morning intraday high $0.03914 before pulling back into the red. The day’s high saw NEM’s XEM fall short of $0.04 levels and the first major resistance level at $0.0408.
An afternoon high $0.03875 was as bullish as it got in the 2nd half of the day. NEM’s XEM fell to a late intraday low and new swing lo $0.03757. Finding support from the first major support level at $0.0374, NEM’s XEM moved back through to $0.038 levels by the day’s end.
The extended bearish trend, formed at late April’s swing hi $0.46547, remained firmly intact following last week’s 26.7% slide. Also, NEM’s XEM continued to fall well short of the 23.6 FIB Retracement Level of $0.1495 following Monday’s new swing lo $0.03757.
At the time of writing, NEM’s XEM was down by 2.99% to $0.03691. A particularly bearish start to the day saw NEM’s XEM slide from a morning high $0.03835 to a morning low and new swing lo $0.03659. NEM’s XEM fell through the first major support level at $0.0374 to call on support at the second major support level at $0.0367.
A move back through the morning high would be needed for NEM’s XEM to take a run at the first major resistance level at $0.0389. We would expect NEM’s XEM to fall short of $0.040 levels for a 2nd consecutive day, however. Monday’s high $0.03914 and bearish sentiment across the broader market will ultimately pin NEM’s XEM back from a breakout on the day.
Failure to move through to $0.0383 levels could see NEM’s XEM fall deeper into the red. A fall through the morning low $0.03659 could see NEM’s XEM slide to $0.035 levels before any recovery. We would expect heavier losses to be avoided in the day. The third major support level at $0.0351 likely keep $0.034 levels out of play.
Major Support Level: $0.0374
Major Resistance Level: $0.0389
Fib 23.6% Retracement Level: $0.1386
Fib 38% Retracement Level: $0.2010
Fib 62% Retracement Level: $0.3020
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.