NEO dipped below the downtrend line on July 6 but found support at the 20-day EMA. The bulls are attempting to defend the support zone between $35.38-$37.97, the two being 61.8 percent and 50 percent retracement levels of the rally from the recent lows.
If the NEO/USD pair sustains above $41, a retest of the July 4 high of $48.9 is probable. The bears might offer a stiff resistance at $43.56, but we expect this level to be crossed.
On the downside, any break of the $35 levels will increase the likelihood of a fall to $30. The gradually rising 20-day EMA points to a possible change in trend.