NEO Technical Analysis – Support Levels in Play – 31/12/18

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.
Bob Mason
Cryptos

Key Highlights

  • NEO rose by 2.85% on Sunday, reversing a 1.34% decline on Saturday, to end the week up 6.4% at $8.31.
  • A start of a day intraday low $7.86 saw NEO hold above the first major support level at $7.71.
  • Support through the morning saw NEO rise to a late morning intraday high $8.46, coming up short of the first major resistance level at $8.57.
  • 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 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.

Looking at the Technical Indicators

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

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