NEO Technical Analysis –Looking for the Bulls – 22/05/18

Key Highlights

• NEO slipped 2.29% on Monday, partially reversing Sunday’s 7.91% rally, to end the day at $62.2.
• A morning rally saw NEO break through the day’s first major resistance level at $65.61 to hit an intraday high $66.62 before an afternoon sell-off to $62 levels.
• The sell-off was supported by selling pressure at the 23.6% FIB Retracement Level of $65.5.
• An intraday low $60.5 held above the day’s first major support level at $60.15.

How to Buy NEO

NEO Price Support

NEO fell by 2.29% on Monday, partially reversing Sunday’s 7.91% gain, to end the day at $62.2.

Momentum from Sunday’s rally carried through the morning, with NEO breaking through the day’s first major resistance level at 65.6 and 23.6% FIB Retracement Level of $65.5 to hit an intraday high $66.62 before a market wide pullback weighed on NEO through the afternoon.

A mid-afternoon intraday low $60.5 came within reach of the day’s first major support level at $60.15, providing NEO with a cushion from more material losses as seen elsewhere in the cryptomarket.

NEO managed to move back through to $62 levels by the day’s end and avoid sub-$60, while the near-term bearish trend formed at the end of April’s swing hi $94.65 remains intact, in spite of Sunday’s rally, NEO having coughed up 5.4% Monday through Sunday and 34% since 30^th April’s swing hi.

For the NEO bulls, the positive will be a hold above the day’s key support levels and a test of the day’s key resistance levels, though the sharp sell-off in the afternoon reflects investor sentiment that is expected to continue to pin back any material rebound to year-end highs for now.

At the time of writing, NEO was down 2.31% to $60.82, NEO sliding through to sub-$60 levels to test the day’s first major support level at $60 with an intraday low $59.88 at the start of the day, before partially recovering to current levels.

The morning’s slide came off the back of Monday’s late morning reversal that spilled over to this morning, with NEO’s recovery to $60 levels likely to be key for direction through the middle part of the day.

A move through to $63 levels would support a run at the 23.6% FIB Retracement Level of $65.5 and the day’s first major resistance level at $65.7, while any attempts at the day’s second major resistance level at $69.2 will likely be thwarted, selling pressure at $65.5 likely to be too great to support a run at $70 levels through the day.

While regulatory risk continues to pin back the major cryptos, news of NEO being ranked number 4 in China’s Ministry of Industry and Information Technology’s blockchain project rankings should provide some support, the number 4 ranking well above its 11^th place by market cap, though we wouldn’t expect a material move up the market cap rankings just yet.

Looking at the Technical Indicators

Major Support Level: $60

Major Resistance Level: $66

Fib 23.6% Retracement Level: $65.5

Fib 38% Retracement Level: $71

Fib 62% Retracement Level: $80