NEO Technical Analysis – Support Levels in Play – 070818

Key Highlights

• NEO slid by 5.28% on Monday, more than reversing Sunday’s 3.29% gain, to end the day at $26.17.
• An early move through to an intraday high $28.31 saw NEO fall short of the day’s first major resistance level at $28.43 before reversing.
• NEO slid through the day to an intraday low $25.67, falling through the first major support level at $26.5 to call on support at the second major support level at $25.37 before recovering to $26 levels.

How to Buy NEO

NEO Price Support

NEO tumbled 5.28% on Monday, more than reversing Sunday’s 3.29% gain, to end the day at $26.17.

A continuation of Sunday’s relief really into the early hours of Monday saw NEO move through to an early intraday high $28.31 before a broad based market sell-off weighed, the morning high coming up short of the first major resistance level at $28.43.

Pulling back through the first major resistance level, NEO fell through the first major support level at $26.5 to call on support at the second major support level at $25.37, with an intraday low and new swing low $25.67 before recovering to $26 levels.

NEO’s new swing lo was the first visit to sub-$26 levels since November of last year, the day long reversal to the new swing lo $25.67 reaffirming the extended bearish trend formed back at late April’s swing hi $94.65, with NEO continuing to fall well short of the 23.6% FIB Retracement Level of $41.95.

For the bulls, a break out from the 23.6% FIB Retracement Level would be needed to kick off a bearish trend reversal, with sentiment across the broader market needing to materially improve for NEO to enjoy a more sustainable recovery, July’s $48.9 high bringing a near-term bullish trend to an abrupt end as investors locked in profits in anticipation of another dip.

At the time of writing, NEO was up 0.18% to $26.21 in what’s been a relatively choppy start to the day, NEO rising to a morning high $26.43 before pulling back to a low $25.85, the morning moves leaving the day’s major support and resistance levels left untested early on.

For the day ahead, a move through to $26.72 would support a run at $27 levels to bring the first major resistance level at $27.76 into play, though NEO will need to steer clear of sub-$26 levels through the late morning to avoid another sell-off and a new swing lo, following NEO’s first visit to sub-$26 levels this year during Monday’s reversal.

Failure to hold on to $26 levels and move through to $26.72 could see NEO take a hit through the late morning, with the day’s first major support level at $25.12 in play, while market sentiment will need to materially deteriorate for NEO to test the day’s second major support level at $24.08 that would bring $23 levels into play.

Looking at the Technical Indicators

• Major Support Level: $25.12
• Major Resistance Level: $29.36
• Fib 23.6% Retracement Level: $42
• Fib 38% Retracement Level: $52
• Fib 62% Retracement Level: $68