NEO Technical Analysis –Sell-off Sees Support Levels Tested – 14/05/18

Key Highlights

• NEO rallied 4.33% on Sunday, following Saturday’s 1.83% gain, to end the day at $67.29, down 19.7% for the week, Monday through Sunday.
• An early morning intraday low $62.51 held above the day’s first major support level at $59.46 before a late morning rally kicked in.
• An intraday high $69.35 saw NEO break through the 23.6% FIB Retracement Level of $67.9 and the day’s first major resistance level at $68.53 before easing back at the day’s end.

How to Buy NEO

NEO Price Support

NEO gained 4.33% on Sunday, following on from Saturday’s 1.83% rise, to end the week down 19.7% at $67.29.

An fall to an intraday low $62.51 in the early hours saw NEO hold above the day’s first major support level at $59.46, with an improvement in sentiment across the broader market seeing NEO rally through the afternoon to an intraday high $69.35, NEO breaking through the 23.6% FIB Retracement Level of $67.9 and the day’s first major resistance level at $68.53 before easing back to a day’s end $67.29.

In spite of the weekend’s gains, NEO’s near-term bearish trend remained intact, with NEO unable to break free from the 23.6% FIB Retracement Level of $67.9 to move through to $70 levels last struck on Friday.

At the time of writing, NEO was down 5.64% to $63.41, NEO seeing the weekend’s gains reverse as investors get jittery over regulatory news out of South Korea in the early morning.

NEO slid to an intraday low $62.21 this morning, selling pressure at the 23.6% FIB Retracement Level of $67.9 at the start of the day leading to NEO falling through the day’s first major support level at $63.4 before finding some support mid-morning.

With investors responding to the latest regulatory news out of South Korea, the day ahead will likely be a testy one for investors, with NEO needing to move back through to $64 levels to support a run at $70 levels, though for NEO to avoid a buildup in selling pressure at the 23.6% FIB Retracement Level of $67.9, sentiment across the broader market will need to improve through the afternoon.

Failure to take a run at the 23.6% FIB Retracement Level of $67.9 with an early move through to $64 levels could see NEO face heavier losses later in the day, bringing the day’s second major support level at $59.54 into play.

We would expect NEO to hold on to $60 levels by the day’s end, with current levels likely to be considered attractive by the more bullish investors, though the near-term bearish trend will unlikely see any reversal in the early part of the week.

Looking at the Technical Indicators

Major Support Level: $63.4

Major Resistance Level: $70.3

Fib 23.6% Retracement Level: $67.9

Fib 38% Retracement Level: $73.0

Fib 62% Retracement Level: $81.3