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NEO Technical Analysis – Break Out Consolidation – 03/07/18

By:
Bob Mason
Published: Jul 3, 2018, 08:54 UTC

It's another great start to the day for NEO, as the crypto bulls look to bounce off Monday's gains to continue the formation of a bearish trend reversal.

consensus

Key Highlights

  • NEO rallied 15.64% on Monday, following Sunday’s 1.66% gain, to end the day at $36.22.
  • Upward momentum from the start of the day saw NEO’s start of the day intraday low $31.04 hold well above the day’s first major support level at $30.27.
  • An intraday high $37.21 saw NEO break through the day’s 3 major resistance levels and end the day above the third major resistance level at $34.38.
  • In spite of the day’s gains, falling short of the 23.6% FIB Retracement Level of $43 left the extended bearish trend intact.

How to Buy NEO

NEO Price Resistance

A start of the day intraday low $31.04 saw NEO steer well clear of the first major support level at $30.27, with a daylong rally seeing NEO break through the day’s first major resistance level at $31.99 to $32 levels in the early morning before a middle of the day bounce saw NEO breakout from $32 levels to move through the day’s second major resistance level at $32.66 and third major resistance level at $34.38 to an intraday high $37.21 before easing back to $36 levels by the day’s end.
It’s been an impressive run since NEO’s swing lo $27.03 back on 29th June, with NEO seeing positive gains for a 4th consecutive day, supporting the beginnings of the formation of a near-term bullish trend, though holding on to Monday’s gains will be key.

While NEO has rallied a whopping 27% from late June’s swing lo $27.03, the extended bearish trend remains intact, with NEO needing to break through the 23.6% FIB Retracement Level of $43 to begin a more sustainable bullish trend formation.

At the time of writing, NEO was up 3.36% to $37.4, the moves through the morning seeing NEO recover from a start of the day low $35.79 to a morning high $38.95 to test the day’s first major resistance level at $38.61 before easing back to $37 levels, the day’s first major support level at $32.44 left untested early on in the day.

For the day ahead, a move back through the morning high would support a run at $40 levels and the day’s second major resistance level at $40.99 to bring the 23.6% FIB Retracement Level of $43 into play, a run through to $43 levels supporting a bearish trend reversal following Monday’s double digit gains.

Failure to move back through the morning’ high $38.95 could see NEO go into reverse later in the day, this morning’s gains and Monday’s in excess of 15% rally certainly giving investors reason to lock in profits ahead of any negative news hitting the wires.

A pullback would bring the day’s first major support level at $32.44 into play, while we would expect NEO to avoid testing sub-$30 support levels on the day in the event of a sell-off.

NEO/USD 03/07/18 4-Hourly Chart

Looking at the Technical Indicators

Major Support Level: $32.44

Major Resistance Level: $38.61

Fib 23.6% Retracement Level: $43

Fib 38% Retracement Level: $53

Fib 62% Retracement Level: $69

About the Author

Bob Masonauthor

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.

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