NEO Technical Analysis – In Reverse Mode – 13/12/18

Key Highlights

• NEO gained 4.43% on Wednesday, partially reversing Tuesday’s 5.48% loss, to end the day at $6.13.
• A start of a day intraday low $5.83 saw NEO steer clear of the first major support level at $5.6533.
• Tracking the broader market, NEO broke through the first major resistance level at $6.1933 to come up against the second major resistance level at $6.5167 with an intraday high $6.57.
• The extended bearish trend formed at the end of April’s swing hi $94.65 remained intact, with NEO continuing to fall well short of the 23.6% FIB Retracement Level of $27, following last week’s new swing lo $5.46.

How to Buy NEO

NEO Price Support

NEO gained 4.43% on Wednesday, partially reversing Tuesday’s 5.48% slide, to end the day at $6.13.

A relatively bullish morning saw NEO rally from a start of a day intraday low $5.83 to a late morning intraday high $6.57, NEO breaking through the first major resistance level at $6.1933 to come up against the second major resistance level at $6.5167 before easing back.

Tracking the broader market through the day, an afternoon high $6.46 was the last bullish move of the day, NEO breaking back through the first major resistance level at $6.1933 before falling back to sub-$6.20 levels by the day’s end.

The day’s gains provided some respite, but failed to shift sentiment towards NEO and the broader market, with the extended bearish trend formed at late April’s swing hi $94.65 remaining intact, NEO continuing to fall well short of the 23.6% FIB Retracement Level of $27.00 following last week’s new swing lo $5.46.

At the time of writing, NEO was down 3.19% to $5.94, with the late Wednesday pullback continuing into the early hours of this morning. NEO fell from a start of a day morning high $6.18 to a morning low $5.90 before steadying, the day’s major support and resistance levels left untested early on.

For the day ahead, a move back through the morning high $6.18 would be needed to support a run the day’s first major resistance level at $6.5233, with NEO needing  to move through to and hold above $6.18 by the early afternoon to support an afternoon rally. We would expect NEO to fall short of the second major resistance level at $6.9167 in the event of a move, with Wednesday’s $6.57 high likely to pin NEO back from a breakout later in the day.

Failure to move back through to $6.18 by the early afternoon could see NEO fall back through the morning low $5.90 to call on support at the first major support level at $5.7833 before any recovery, heavier losses in the day not expected barring materially negative news hitting the wires.

Looking at the Technical Indicators

Major Support Level: $5.7833

Major Resistance Level: $6.5233

Fib 23.6% Retracement Level: $27

Fib 38% Retracement Level: $40

Fib 62% Retracement Level: $61