NEO Technical Analysis – Calls on Support – 31/08/18

Key Highlights

• NEO slipped by 1.06% on Thursday, following Wednesday’s 7.19% tumble, to end the day at $19.54.
• Falling from a start of a day intraday high $20.13, NEO fell through the day’s first major support level at $18.72 to an intraday low $18.36 before recovering.
• A late in the day recovery saw NEO break back through the first major support level to $19 levels by the day’s end.
• The mid-week reversal reaffirmed the extended bearish trend formed at the end of April’s swing hi $94.65.

How to Buy NEO

NEO Price Support

NEO fell by 1.06% on Thursday, following Wednesday’s 7.19% sell-off, to end the day at $19.54.

Wednesday afternoon’s reversal continued through Thursday, with NEO falling from a start of a day intraday high $20.13 to a late afternoon intraday low $18.36, the moves through the day seeing NEO fall through the first major support level at $18.72 before finding support, the major resistance levels left untested on the day.

Tracking the broader market NEO reversed some of the day’s losses, breaking back through the day’s first major support level to end the day at $19 levels.

Two consecutive days of losses reaffirmed NEO’s extended bearish trend, formed at late April’s swing hi $94.65, with NEO having last tested selling pressure at the 23.6% FIB Retracement Level back in May.

Relative to the broader market, Thursday’s decline was relatively minor, though much of the damage had been done on Wednesday, in response to regulatory chatter out of Europe, NEO seeing a move back through to $20 levels at the start of the week reverse.

For the crypto bulls, NEO has some way to go to reverse the extended bearish trend, with a break out from the 23.6% FIB Retracement Level of $33 to test selling pressure at the 38.2% FIB Retracement Level of $45 needed to begin forming a bearish trend reversal.

At the time of writing, NEO was down 1.33% to $19.29, with NEO falling from a start of a day morning high $19.55 to a morning low $18.86, the early moves seeing NEO steer clear of the major support and resistance levels.

For the day ahead, moving back through to $19.4 would support a run at $20 levels to bring the day’s first major resistance level at $20.33 into play, though we can expect NEO to face plenty of resistance on a run at $20 levels, barring a material shift in sentiment across the broader market that delivers a momentum rally.

Failure to move back through and hold above $19.4 could see NEO take a bigger hit later in the day, with a fall back through the morning low $18.86 bringing the day’s first major support level at $18.56 into play, NEO unlikely to test sub-$18 support levels barring materially negative news hitting the wires.

Looking at the Technical Indicators

Major Support Level: $18.56

Major Resistance Level: $20.33

Fib 23.6% Retracement Level: $33

Fib 38% Retracement Level: $45

Fib 62% Retracement Level: $64