NEM Rejecting Second Support

Since the end of April NEM has corrected down strongly, while it moved from $0.45, down to $0.22. At $0.22 it found the support at 88.6% Fibonacci retracement level that has been rejected. Following wave up resulting in a growth towards $0.27 and then a small correctional wave down.

On a correction NEM/USD yet again found the support at 61.8% Fibs, that is $0.24, and at the same time bounce off the upper trendline of the broken descending channel. The rejection of two supports could mean that trend is slowly starting to reverse to the upside, targeting $0.4 level, which is 76.4% Fibs.

The downtrend could only continue if NEM will break and close below $0.22. In that case a potential double bottom formation near $0.2 could take place.

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