The Magpies were beaten by Arsenal on Saturday afternoon.
The Magpies were beaten 1-0 by Arsene Wenger’s side at the Emirates on Saturday afternoon, with a goal from Laurent Koscielny handing all three points to the Gunners.
They were unfortunate to lose the game though, having wasted several big chances of their own with the scores at 0-0 that could have secured the points for them instead.
It was a third straight single-goal defeat for Steve McClaren’s side to leave them sitting in the bottom three, but Elliot believes they are close to cracking it and turning things around.
"I thought we played really well but we've got to start taking our chances,” he told nufc.co.uk.
"The potential is there to be seen. I thought we dominated the game from start to finish. They put us under a bit of pressure but not as much as we put them under.
"We're not far from cracking it. You can see we're almost there but it's fine margins and getting those things right. If we can keep showing that character and improve in a couple of areas, we should be alright."
If Newcastle are to turn things around and avoid relegation this season, it may come down to the business McClaren can do in the January transfer window.
The loss to Arsenal once again showed how desperately his side need a regular goalscorer in their side, with midfielder Georginio Wijnaldum currently their top scorer.
A number of sides in the Premier League are looking for a striker though; meaning one is sure to be hard to find for McClaren.