It's another bearish day for NEM's XEM, with a start of the day swing lo leaving XEM under pressure early on, direction from the likes of Bitcoin needed to support a rebound to break through resistance levels on the day.
NEM’s XEM slid by 6.91% on Thursday, following Wednesday’s 3.02% fall, to end the day at $0.30263, making it 4 consecutive days’ of losses off the back of a material shift in broader market sentiment at the start of the week.
An early morning high $0.32377 left NEM’s XEM short of the day’s first major resistance level at $0.3389 and the 23.6% FIB Retracement Level of $0.3378, to leave direction through the morning relatively range bound, with a morning low $0.31533, before a broader market sell-off in the afternoon weighed.
NEM’s XEM pulled back through the day’s first major support level at $0.3067 to an intraday low and new swing lo $0.29384 before recovering $0.30 levels by the day’s end.
The new swing low and failure to move through the day’s first major support level at $0.3067 affirming the near-term bearish trend formed at 25th April’s swing hi $0.46185, with a recovery to $0.30 levels of little comfort.
At the time of writing, NEM’s XEM was down 2.48% to $0.2951, with an early recovery from a start of the day intraday low and new swing lo $0.29124 to a morning high $0.30397 going into reverse in the last hour.
With the day’s major support and resistance levels untested early on, in spite of the new swing lo, a move back through to the morning high would support a run at the day’s first major resistance level at $0.3197, though NEM’s XEM will need break down resistance at $0.30 through the early part of the day.
Any upside through the afternoon will likely leave the 23.6% FIB Retracement Level of $0.3335 and the day’s second major resistance level at $0.3367 untested, barring a Bitcoin rally through the middle part of the day that could draw side lined investors back into the game.
Failing to break clear of $0.30 levels could see NEM’s XEM face another day of heavy losses, the day’s first major support level at $.2897 and second major support level at $0.2768 in play through the day. We would expect a bounce back from any test of the day’s second major support level, though investors may need to hope for one of the year’s strong weekend rallies for a reversal of the week’s losses.
Major Support Level: $0.2897
Major Resistance Level: $0.3197
Fib 23.6% Retracement Level: $0.3335
Fib 38% Retracement Level: $0.358
Fib 62% Retracement Level: $0.3977
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.