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NEO Technical Analysis – Support Levels in Play – 08/01/19

By:
Bob Mason
Published: Jan 8, 2019, 06:04 UTC

It's back in the red for NEO, with negative sentiment across the broader market weighing early on. $8.80 will be the bulls early afternoon target.

NEO Technical Analysis – Support Levels in Play – 08/01/19

Key Highlights

  • NEO fell by 2.65% on Monday, partially reversing last week’s 6.5% gain, to end the day at $8.63.
  • A start of a day intraday high $9.19 came up short of the first major resistance level at $9.37 before hitting reverse.
  • The reversal saw NEO fall to an early afternoon intraday low $8.56, holding well above the first major support level at $8.04.
  • 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 $27, following 7th December’s new swing lo $5.46.

How to Buy NEO

NEO Price Support

NEO slid by 2.65% on Monday, partially reversing a 10.63% rally on Sunday that gave NEO a 6.5% gain for the week, to end the day at $8.63.

A bullish start to the day saw NEO rally to an intraday high $9.19 before succumbing to pressure from the broader market, the start of the day high coming up short of the day’s first major resistance level at $9.37.

A late morning sell-off saw NEO slide to a morning low $8.63 before pulling back to an early afternoon intraday low $8.56, the day’s low holding well above the first major support level at $8.04. Attempts at a break back through to $9.00 levels came up short through the 2nd half of the day, $8.80 as good as it got for the crypto bulls.

In spite of last week’s gains, the extended bearish trend remained intact, with NEO continuing 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 down 1.33% to $8.52, with a bearish morning seeing NEO fall from a start of a day morning high $8.78 to a morning low $8.46 before steadying, the day’s major support and resistance levels left untested early on in the day.

For the day ahead, a move back through the morning high $8.78 to $8.80 levels would bring the first major resistance level at $9.03 into play before any pullback, a broad based cryptomarket rebound needed to support a run at the second major resistance level at $9.42 later in the day.

Failure to move through to $8.80 levels could see NEO take a bigger hit later in the day, a fall through the morning low $8.46 bringing the day’s first major support level at $8.40 into play, with heaver losses on the cards should sentiment across the broader market fail to improve later in the day.

While sub-$8.00 levels are unlikely to be in play, any calls on support at the second major support level at $8.16 could get investors nervous, raising the possibility of a major reversal to eat into Sunday’s 10.6% rally.

NEO/USD 08/01/19 Daily Chart

Looking at the Technical Indicators

Major Support Level: $8.40

Major Resistance Level: $9.03

Fib 23.6% Retracement Level: $27

Fib 38% Retracement Level: $40

Fib 62% Retracement Level: $61

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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