NEO Technical Analysis – Break Out Consolidation – 03/07/18

Published: Jul 3, 2018, 08:54 UTC•2min read

It’s another great start to the day for NEO, as the crypto bulls look to bounce off Monday’s gains to continue the formation of a bearish trend reversal.

Key Highlights

NEO rallied 15.64% on Monday, following Sunday’s 1.66% gain, to end the day at $36.22.
Upward momentum from the start of the day saw NEO’s start of the day intraday low $31.04 hold well above the day’s first major support level at $30.27.
An intraday high $37.21 saw NEO break through the day’s 3 major resistance levels and end the day above the third major resistance level at $34.38.
In spite of the day’s gains, falling short of the 23.6% FIB Retracement Level of $43 left the extended bearish trend intact.

How to Buy NEO

NEO Price Resistance

A start of the day intraday low $31.04 saw NEO steer well clear of the first major support level at $30.27, with a daylong rally seeing NEO break through the day’s first major resistance level at $31.99 to $32 levels in the early morning before a middle of the day bounce saw NEO breakout from $32 levels to move through the day’s second major resistance level at $32.66 and third major resistance level at $34.38 to an intraday high $37.21 before easing back to $36 levels by the day’s end.
It’s been an impressive run since NEO’s swing lo $27.03 back on 29^th June, with NEO seeing positive gains for a 4^th consecutive day, supporting the beginnings of the formation of a near-term bullish trend, though holding on to Monday’s gains will be key.

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While NEO has rallied a whopping 27% from late June’s swing lo $27.03, the extended bearish trend remains intact, with NEO needing to break through the 23.6% FIB Retracement Level of $43 to begin a more sustainable bullish trend formation.

At the time of writing, NEO was up 3.36% to $37.4, the moves through the morning seeing NEO recover from a start of the day low $35.79 to a morning high $38.95 to test the day’s first major resistance level at $38.61 before easing back to $37 levels, the day’s first major support level at $32.44 left untested early on in the day.

For the day ahead, a move back through the morning high would support a run at $40 levels and the day’s second major resistance level at $40.99 to bring the 23.6% FIB Retracement Level of $43 into play, a run through to $43 levels supporting a bearish trend reversal following Monday’s double digit gains.

Failure to move back through the morning’ high $38.95 could see NEO go into reverse later in the day, this morning’s gains and Monday’s in excess of 15% rally certainly giving investors reason to lock in profits ahead of any negative news hitting the wires.

A pullback would bring the day’s first major support level at $32.44 into play, while we would expect NEO to avoid testing sub-$30 support levels on the day in the event of a sell-off.