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NEO Technical Analysis – Support Levels in Play – 16/01/19

By:
Bob Mason
Published: Jan 16, 2019, 05:45 UTC

It's a mixed start to the day, with NEO needing to move back through to $7.75 levels to avoid a sell-off.

NEO Technical Analysis – Support Levels in Play – 16/01/19

Key Highlights

  • NEO fell by 5.45% on Tuesday, partially reversing an 11.77% rally from Monday, to end the day at $7.63.
  • A start of a day intraday high $8.1 saw NEO come up short of the first major resistance level at $8.42.
  • A late intraday low $7.46 saw NEO call on support at the first major support level at $7.46 before moving back through to $7.6 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 $27, following 7th December’s new swing lo $5.46.

How to Buy NEO

NEO Price Support

NEO fell by 5.45% on Tuesday, partially reversing an 11.77% bounce on Monday, to end the day at $7.63.

A start of a day intraday high $8.1 saw NEO fall well short of the first major resistance level at $8.42 before hitting reverse through the day, negative sentiment across the broader market weighing, as investors looked to lock in profits from Monday’s rebound.

Bearish through the day, NEO fell to a late in the day intraday low $7.46, calling on support at the first major support level at $7.46 to move back through to $7.6 levels by the day’s end.

The extended bearish trend, formed at the end of April swing hi $94.65, remained intact, with NEO continuing to fall well short of the 23.6% FIB of $27 following 7th December’s swing lo $5.46 and last week’s 18.6% slide.

At the time of writing, NEO was down 0.02% to $7.63, with a relatively range bound start to the day seeing NEO rise from a morning low $7.55 to a morning high $7.77 before easing back, the day’s major support and resistance levels left untested early on.

For the day ahead, a move back through to $7.75 levels would be needed to support another run at $8.00 levels and the first major resistance level at $8.00. The day’s second major resistance level at $8.37 could be in play later in the day should the broader market find support through the late morning into the afternoon.

Failure to move back through to $7.75 levels could see NEO pullback through the morning low $7.55 to bring the first major support level at $7.36 into play before any recovery. While the bears continue to run the show, the day’s second major support level at $7.09 would likely prevent a pullback to sub-$7.00 levels on the day.

NEO/USD 16/01/19 Daily Chart

Looking at the Technical Indicators

Major Support Level: $7.36

Major Resistance Level: $8.00

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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