The Chinese TESLA? Bull Trend| Correction Imminent| Resistance!
Hello Traders!,
Today’s chart update will be on a stock called NIO (referred to as the Chinese TESLA), which has come out of a bear trend approaching key resistance.
Points to consider,
- Strong uptrend in fruition
- Structural resistance yet to break (.50 Fibonacci in confluence)
- MA’s crossed bullish
- Stochastics in upper regions
- RSI in overbought
- Healthy bull volume
NIO’s bull trend has negated the bearish structure putting in higher highs with convincing volume. Structural resistance is yet to break, a very key level to close above for a bullish bias, however, NIO is probable to retrace.
Moving averages have crossed, which is a very bullish sign as this confirms that momentum is changing for a lower low trajectory.
Stochastics in upper regions can stay trading here for an extended period of time, however lots of stored momentum to the downside. RSI is trading in overbought, correction is imminent, most probable a retrace back to support is upon fruition.
Healthy bull volume which must sustain above average for follow through, otherwise fake outs from key levels are likely.
Overall, in my opinion, NIO is upon testing a key technical resistance in confluence with .50 Fibonacci, a rejection back to support or MA’s is likely before another leg up.
Bullish Long Term!
What are your thoughts on this stock?
Please leave a like and comment,
And remember,
“You become fearful the moment you identify with fear. But once you begin seeing it as an impersonal changing phenomenon, you become free.”
― Yvan Byeajee
Today’s chart update will be on a stock called NIO (referred to as the Chinese TESLA), which has come out of a bear trend approaching key resistance.
Points to consider,
- Strong uptrend in fruition
- Structural resistance yet to break (.50 Fibonacci in confluence)
- MA’s crossed bullish
- Stochastics in upper regions
- RSI in overbought
- Healthy bull volume
NIO’s bull trend has negated the bearish structure putting in higher highs with convincing volume. Structural resistance is yet to break, a very key level to close above for a bullish bias, however, NIO is probable to retrace.
Moving averages have crossed, which is a very bullish sign as this confirms that momentum is changing for a lower low trajectory.
Stochastics in upper regions can stay trading here for an extended period of time, however lots of stored momentum to the downside. RSI is trading in overbought, correction is imminent, most probable a retrace back to support is upon fruition.
Healthy bull volume which must sustain above average for follow through, otherwise fake outs from key levels are likely.
Overall, in my opinion, NIO is upon testing a key technical resistance in confluence with .50 Fibonacci, a rejection back to support or MA’s is likely before another leg up.
Bullish Long Term!
What are your thoughts on this stock?
Please leave a like and comment,
And remember,
“You become fearful the moment you identify with fear. But once you begin seeing it as an impersonal changing phenomenon, you become free.”
― Yvan Byeajee
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