It's back in the red for NEO, giving up most of last week's gains, with a move back through to $8.00 levels needed early to avoid heavier losses.
NEO gained 2.85% on Sunday, reversing Saturday’s 1.34% gain with interest, to end the day at $8.31.
NEO rose by 6.4% through the week, with 4 days in the green providing much needed support in what was a relatively range bound week by recent standards.
Through the day, NEO recovered from a start of a day intraday low $7.86 to strike a late morning intraday high $8.46 before easing back. Holding onto $8.00 levels through the 2nd half of the day, a late in the day move saw NEO recover to $8.30 levels.
In spite of a 4th day in the green for the week, 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 was down 4.06% to $7.98, with moves through the early morning seeing NEO slide from a start of a day morning high $8.38 to a morning low $7.80, NEO falling through the first major support level at $7.96, whist leaving the first major resistance level at $8.56 untested early on.
For the day ahead, a breakout from the first major support level through to $8.00 levels would support a run through $8.3 levels to bring the first major resistance level at $8.56 into play before any pullback, with sentiment across the broader market needing to materially improve for NEO to recover early losses.
Failure to breakout from the first major support level could see NEO face heavier losses through the day, with a pullback through the morning low $7.80 likely to bring the second major support level at $7.61 into play before any recovery, the bearish sentiment early on pointing to a dark end to the year for NEO and the broader market.
For the bulls, steering clear of sub-$7.80 levels through the morning will be key to avoiding a more sizeable sell-off later in the day.
Major Support Level: $7.96
Major Resistance Level: $8.56
Fib 23.6% Retracement Level: $27
Fib 38% Retracement Level: $40
Fib 62% Retracement Level: $61
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.