Neo Rejects Breakout

Neo broke its losing streak with a brief rejection from the lower bound of the KRI at $81, only to revert to this level once more. This has thwarted our hopes of a bull segment to the impulse phase of the Elliott Wave. Neo currently seems to be establishing the range between $81 and $92, the latter corresponding to a Fibonacci level. The bullish crab cypher pattern does not seem to have the momentum we'd expect from a breakout, which suggests that pattern has failed. We mentioned yesterday that we could retest $81 or $80, a psychological level and lower bound of recent support on day candles. This seems to be the case currently. Beyond that, we must turn to the $60's for support. From above, we have the upper bound at $92. Then we can expect resistance at $95 and $100, the latter being a major level, which will provide significant resistance, as will $102. After that, there is a vacuum zone to $110.

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