NEO Technical Analysis – Support Levels in Play – 05/12/18

NEO takes a big hit early on another wave of sellers hit the broader cryptomarket, the bears firmly in control, with December lining up to be a horror.
Bob Mason

Key Highlights

  • NEO gained 4.06% on Tuesday, following an 8.18% slide on Monday, to end the day at $7.69.
  • An early morning intraday low $7.06 saw NEO call on support at the first major support level at $7.05 before recovering.
  • The recovery saw NEO rally to an early afternoon intraday high $8.18, breaking through the first major resistance level at $7.95 before easing back to sub-$8.00 levels.
  • 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 $28, following last week’s new swing lo $6.75.

How to Buy NEO

NEO Price Resistance

NEO gained 4.06% on Tuesday, partially reversing an 8.18% slide on Monday, to end the day at $7.69.

In line with the broader market, a bearish start to the day saw NEO slide through the early hours to an intraday low $7.06, calling on support at the first major support level at $7.05 and from the broader market to bounce back through to an early afternoon intraday high $8.18.

The late morning recovery and early afternoon high saw NEO break through the first major resistance level at $7.95 before hitting reverse through the late afternoon to pullback to sub-$8.00 levels.

In spite of Tuesday’s partial recovery, the extended bearish trend formed at the end of April’s swing hi $94.65 remained firmly intact following last week’s new swing lo $6.75, with NEO continuing to fall well short of the 23.6% FIB Retracement Level of $28.

At the time of writing, NEO was down 4.93% to $7.31, with a particularly bearish start to the day seeing NEO fall from a morning high $7.69 to a morning low $7.28 before moving back through to $7.3 levels, the day’s major support and resistance levels left untested early on.

For the day ahead, a move back through the morning high $7.69 would be need to support an afternoon rally to bring $8.00 levels and the day’s first major resistance level at $8.23 into play before any pullback, though we can expect NEO to face plenty of resistance on a run through to $8.00 levels on the day, with support being needed from the broader market to drive a break out from $8.00.

Failure to move back through the morning high could see NEO take a bigger hit later in the day, with a pullback through the morning low $7.28 bringing the day’s first major support level at $7.11 and sub-$7.00 levels into play before any recovery, while we would expect the day’s second major support level at $6.52 to be left untested through the day.

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Looking at the Technical Indicators

Major Support Level: $7.11

Major Resistance Level: $8.23

Fib 23.6% Retracement Level: $28

Fib 38% Retracement Level: $40

Fib 62% Retracement Level: $61

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