NEO Technical Analysis – Looking to Consolidate – 13/04/18

Key Highlights

• NEO rallied 15% on Thursday, following Wednesday’s 11% run, to end the day at $67.
• A late morning $54.5 avoided the day’s first major support level of $53.66, supporting a NEO rally to an intraday high $67.68 in the final hours of the day, before a slight easing to $67 by the end of the day.
• The day’s high broke through and held above the 62% FIB Retracement Level of $66.3, while coming up short of the 3^rd resistance level of $72.15.

NEO Price Resistance

NEO rallied 15.02% on Thursday, following Wednesday’s 10.84% bounce, to end the day at $67, the highest close since 23^rd March that had come at the start of a late March bearish trend formed at 20^th March’s swing hi $79.93.

A morning intraday low $54.5 held well above the day’s first major support level of $53.66, with a shift in sentiment across the broader market, following some sideways moves through the middle of the week, seeing NEO rally to a middle of the day $63.95 high to break through the day’s first major resistance level of $61.37 and 2^nd resistance level of $64.44 before a late in the day momentum driven run to an intraday high $67.68.

While NEO failed to break through to $70 levels and test the day’s 3^rd resistance level of $72.15, a break out from the 62% FIB Retracement Level of $66.3 in the late evening was a key move, with NEO’s hold above $66.3 an affirmation of the short term bullish trend formed at 6^th April’s swing lo $44.16. The moves this week have also started a reversal of the longer-term bearish trend, though much will depend on direction through today and the weekend.

At the time of writing, NEO was down 2.3% to 65.36, partially reversing Thursday’s gains but yet to suggest a reversal.

An early morning $64 low held well above the day’s first major support level of $58.44 and the more important 23.6% FIB Retracement Level of $62.13, with NEO needing to hold on to $60 levels through the middle part of the day to continue provide the bullish sentiment formed at 6^th April’s swing lo $44.16.

The start of the day’s $67.9 came up short of $70 levels and the day’s first major resistance level of $71.62, with a move back through to $67 levels likely to support a run at the day’s first major resistance level and affirm the longer-term bearish trend reversal.

Failure to push through to $70 levels could see a late in the day pullback through the 23.6% FIB Retracement Level, with buyer appetite likely to be dictated by sentiment across the broader market.

The bearish trend may have come to an end near-term, but for investors the threat from governments and regulators have not gone, which will continue to test short-term bullish trends, making today’s moves all the more relevant.

Looking at the Technical Indicators

Major Support Level: $58.44

Major Resistance Level: $71.62

Fib 23.6% Retracement Level: $62.13

Fib 38% Retracement Level: $58.70

Fib 62% Retracement Level: $53.15