NEO Technical Analysis – Resistance Levels in Play – 07/08/19

NEO finds support early but will need to move through to $11.54 levels to bring the major resistance levels into play…
Bob Mason
Bitcoin and Litecoin over dollar banknotes.

Key Highlights

  • NEO slid by 5.5% on Tuesday. Reversing a 0.92% fall from Monday, NEO ended the day at $11.33.
  • A late morning intraday high $12.25 saw NEO fall short of the first major resistance level at $12.45 before hitting reverse.
  • A late intraday low $11.03 saw NEO fall through the first major support level at $11.75 and second major support level at $11.47.
  • The extended bearish trend formed at the end of April 2018’s swing hi $94.65 remained firmly intact. NEO continued to fall well short of the 23.6% FIB Retracement Level of $27 following 7th December’s new swing lo $5.46.

How to Buy NEO

NEO Price Support

NEO slid by 5.5% on Tuesday. Reversing a 0.92% fall from Monday with interest, NEO ended the day at $11.33.

A particularly choppy morning saw NEO recover from an early dip to strike a late morning intraday high $12.25.

In spite of the mid-morning rally, NEO came up short of the first major resistance level at $12.45 before hitting reverse.

NEO fell through the first major support level at $11.75 to a late morning low $11.67. A partial recovery to $11.8 levels was short-lived, with a broad-based crypto sell-off doing the damage through the afternoon.

The sell-off saw NEO slide to a late intraday low $11.03. Falling back through the first major support level at $11.75, NEO also fell through the second major support level at $11.47 before steadying.

Avoiding sub-$11 levels on the day was key, though failing to move back through the second major support level will pressure NEO going into Wednesday.

The extended bearish trend, formed at April 2018’s swing hi $94.65 remained firmly intact. NEO continued to fall well short of the 23.6% FIB of $27 following 7th December’s swing lo $5.46.

At the time of writing, NEO was up by 0.43% to $11.38. A mixed start to the day saw NEO recover from an early morning low $11.20 to strike a morning high $11.40 before easing back.

In spite of the early moves, NEO left the major support and resistance levels untested.

For the day ahead

A move through to $11.54 levels would support a run at $12 levels and the first major resistance level at $12.04.

NEO would need the support of the broader market, however, to take a run on Tuesday’s high $12.25.

Barring a broad-based crypto rally, NEO would likely come up short of the second major resistance level at $12.76. The first major resistance level at $12.04 and Tuesday’s high $12.25 would likely cap any upside on the day.

Failure to move through to $11.54 levels could see NEO hit reverse. A fall through the morning low $11.20 to sub-$11 levels would bring the first major support level at $10.82 into play.

Barring a crypto meltdown, however, NEO should steer well clear of the second major support level at $10.32.

Looking at the Technical Indicators

Major Support Level: $10.82

Major Resistance Level: $12.04

23.6% FIB Retracement Level: $27

38.2% FIB Retracement Level: $40

62% FIB Retracement Level: $61

Please let us know what you think in the comments below

Thanks, Bob

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