Hello traders and investors! Since our last study, NIO didn’t trigger the pivot point we mentioned, but it still could. Let’s see how it has been behaving.
First, in the 1h chart, we have a slow and weak bearish movement, but it seems NIO found a floor around the green line at $ 36.82, and it worked multiple times as a support level.
What’s more, we have a purple trendline connecting the descending tops, making this something like a Descending Triangle chart pattern. And it is great that today we have an upwards breakout from this pattern, as this could trigger a very nice reversal in the short/mid-term.
Nio must keep above the purple trendline now, and above the 21 ema, if NIO wants to reverse the trend in the daily chart as well. Speaking of the daily chart:
In the daily chart, we still see the orange line at $ 42.05, which is the most important pivot point to be triggered. If the trend reverses in the 1h chart, then probably NIO will trigger this pivot point for good.
The risks: The volume is still too low, so we must see a good reaction with good volume first. In addition, the 21 ema seems to be a strong resistance level too, and since the sell-off started, at any moment NIO traded above it.
But if it triggers the points mentioned, NIO could easily seek again the $ 66.95, as the trend is still bullish in the long-term, so, it seems the odds favor the bulls in the end.
Now, if you liked this analysis, remember to follow me to keep in touch with my daily studies, and support this idea with your like!
Thank you very much!
First, in the 1h chart, we have a slow and weak bearish movement, but it seems NIO found a floor around the green line at $ 36.82, and it worked multiple times as a support level.
What’s more, we have a purple trendline connecting the descending tops, making this something like a Descending Triangle chart pattern. And it is great that today we have an upwards breakout from this pattern, as this could trigger a very nice reversal in the short/mid-term.
Nio must keep above the purple trendline now, and above the 21 ema, if NIO wants to reverse the trend in the daily chart as well. Speaking of the daily chart:
In the daily chart, we still see the orange line at $ 42.05, which is the most important pivot point to be triggered. If the trend reverses in the 1h chart, then probably NIO will trigger this pivot point for good.
The risks: The volume is still too low, so we must see a good reaction with good volume first. In addition, the 21 ema seems to be a strong resistance level too, and since the sell-off started, at any moment NIO traded above it.
But if it triggers the points mentioned, NIO could easily seek again the $ 66.95, as the trend is still bullish in the long-term, so, it seems the odds favor the bulls in the end.
Now, if you liked this analysis, remember to follow me to keep in touch with my daily studies, and support this idea with your like!
Thank you very much!
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💲💲 Project 5%: + 104%
🔹 S&P500: +35%
💪 Public track record.
