NEO Technical Analysis – Tests Support on Consolidation – 19/07/18

Key Highlights

• NEO fell by 4.53% on Wednesday, partially reversing Tuesday’s 6.74% gain, to end the day at $37.55.
• A late in the day move through to an intraday high $40.81 left the day’s first major resistance level at $41.14 untested before a broad based market reversal kicked in.
• NEO pulled back through to sub-$40 levels to test the first major support level at $36.6 with an intraday low $36.66 before recovering to $37 levels.
• The extended bearish trend remained intact, with NEO continuing to fall short of the 23.6% FIB Retracement Level of $43.

How to Buy NEO

NEO Price Support

NEO fell by 4.53% on Wednesday, partially reversing Tuesday’s 6.74% gain, to end the day at $37.55, with the day’s losses bringing to an end the upward momentum that kicked in at the end of the weekend.

A relatively range bound morning saw NEO’s morning high $40.12 and low $38.53 steer clear of the day’s first major resistance level at $41.1 and first major support level at $36.6, as NEO and the broader market looked to consolidate gains from the first part of the week.

The range bound moves through to the late afternoon ultimately led to a reversal late in the day, with a move through to an intraday high $40.81 also falling short of the first major resistance level at $41.1 before sliding to test the day’s first major support level at $36.6 with an intraday low $36.66.

With NEO continuing to fall short of the 23.6% FIB Retracement Level of $43 and failing to end the day at $40 levels, the extended bearish trend, formed at 30^th April’s swing hi $94.65 remained intact, in spite of the gains through the week.

At the time of writing, NEO was down 2% to $36.76, as Wednesday’s late sell-off continued into the early hours of this morning, NEO falling from a start of the day $37.6 high to a morning low $36.21 before steadying.

Moves through the day left the day’s major support and resistance levels untested, with NEO seeing any hopes of a break through the 23.6% FIB Retracement Level of $43 weaken over the near-term.

For the day ahead, a move through $38.34 would support a run at the day’s first major resistance level at $40, though sentiment across the broader market will need to significantly improve for NEO to break through $40 to take a run at the 23.6% FIB Retracement Level of $43 and begin forming a bearish trend reversal.

Failure to recover from the morning’s losses and move through to $38 levels will likely see NEO pullback to $35 levels to test the day’s first major support level at $35.87 before any recovery, a range bound middle part of the day likely to spell more trouble for NEO, with investors unlikely to hold on to positions in fear of another sell-off.

Looking at the Technical Indicators

Major Support Level: $35.87

Major Resistance Level: $41.1

Fib 23.6% Retracement Level: $43

Fib 38% Retracement Level: $53

Fib 62% Retracement Level: $69