NEO Technical Analysis – Tests Support Early – 04/04/18

Key Highlights

• NEO gained 8.99% on Tuesday, adding to Monday’s 3.3% rise, to end the day at $53.21.
• An early intraday low $48.28 steered clear of the day’s first major support level of $46.9, while NEO broke through the day’s first major resistance level and 2^nd resistance levels and 23.6% FIB Retracement Level.
• The moves through the day affirmed a short-term reversal of the bearish trend.

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How to Buy NEO: The Complete Guide

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NEO’s Price Resistance

NEO’s recovery from Sunday’s swing lo $44.84 continued on Tuesday, with NEO rallying 8.99% to end the day at $53.21, the gains coming off the back of Monday’s 3.3% rise.

The moves through the start of the 2^nd quarter have formed a short-term bullish trend from Sunday’s swing lo $44.84, with NEO hitting a swing hi $54.31 on Tuesday evening, affirming the short-term reversal to the bearish trend that had formed at 20^th March’s swing hi $79.93.

NEO’s Tuesday high $54.31 broke through the day’s first major resistance level of $50.59 and 2^nd resistance level of $52.29, supporting a run at the day’s 38.2% FIB Retracement Level of $57.59, with the upbeat sentiment across the crypto market seeing little selling pressure as NEO broke through the day’s 23.6% FIB Retracement Level of $52.72.

A day low $48.28 held above the first major support level of $46.9, with support levels untested across the major cryptos on the day. The end of day $53.21 hold above the 23.6% FIB Retracement Level, continued to support a short-term recovery and confirm the view that NEO and the broader market had bottomed out at Sunday’s swing lo.

There’s still a long way to go before the cryptos can shake off the anxiety of what lies ahead regulatory wise and until governments and regulators have delivered, we can expect volatility to persist, investors quick to jump in and out, wanting to avoid any significant losses on positions.

At the time of writing, NEO was down 3.46% to $51.55, partially reversing Tuesday’s gains, as investors looked to lock in profits from Tuesday. NEO slid through the day’s 23.6% FIB Retracement Level of $52.08 in the first few hours of the day to an intraday low $50.78, before buying appetite returned, NEO managing to avoid testing the day’s first major support level of $49.56 and a pullback to sub-$50 levels.

For the day ahead, a move back through the 23.6% FIB Retracement Level would support a run at the day’s first major resistance level of $55.59, though for a break out the sentiment across the broader cryptomarket will need to improve through the middle part of the day.

There’s been no materially negative news to suggest a reversal of the short-term bullish trend formed, but a failure to move through to $52 levels could see NEO test buyer appetite at the 38.2% FIB Retracement Level of $50.69 that would bring the day’s first major support level of $49.56 into play.

Near-term, a move through to $55 levels would cement the first part of the week’s gains and continue to support a recovery to $60 levels last touched in late March.

Looking at the Technical Indicators

• Major Support Level: $49.56
• Major Resistance Level: $55.59
• Fib 23.6% Retracement Level: $52.08
• Fib 38% Retracement Level: $50.69
• Fib 62% Retracement Level: $48.46