Hello traders and investors! Let’s see how NIO is doing today.
While Tesla is at record levels again, NIO is not far behind. It frustrated the idea of a H&S chart pattern in the hourly chart, which is good, and it did a breakout from a Triangle pattern.
As we discussed, Triangles work as continuation patterns (most of the time), and now it is just continuing the bull trend, as usual. Also, we have two important pivot points to keep in mind here.
There’s the green line at $ 49.36, which if defeated it’ll reinforce the bull trend even more, and NIO will possibly break its record high.
And we have the red line ($ 42.51), which is a stop point. If NIO loses it, then we would see some pullback, but nothing scary (in my opinion). Let’s take a look at the daily chart:
Technically speaking, NIO could drop all the way down to $ 29.40 and this would still be acceptable, and the bull trend would be intact. Any pullback to this level would be just opportunity to buy, because the odds are that it’ll just get back up to new levels.
If we don’t see a clear reversal sign, the trend will persist, according to Charles Dow, of course: Dow Theory 6th tenet - Trends Persist Until a Clear Reversal Occurs.
And so far, no clear reversal sign ahead. But I would keep my eye on the red line in the hourly chart, just in case.
By looking at the weekly chart, we can tell that the trend is extremely strong, from the $ 2 to almost $ 50. If I were on NIO, I would just set a trailing stop in the weekly chart, always under the previous week’s low. This is another interesting strategy to use.
The volume is increasing a lot, giving fuel to the bull trend, and so far, NIO is performing very well.
And if you liked this analysis, please, support it! And follow me to keep in touch with my daily updates!
Trade well.
While Tesla is at record levels again, NIO is not far behind. It frustrated the idea of a H&S chart pattern in the hourly chart, which is good, and it did a breakout from a Triangle pattern.
As we discussed, Triangles work as continuation patterns (most of the time), and now it is just continuing the bull trend, as usual. Also, we have two important pivot points to keep in mind here.
There’s the green line at $ 49.36, which if defeated it’ll reinforce the bull trend even more, and NIO will possibly break its record high.
And we have the red line ($ 42.51), which is a stop point. If NIO loses it, then we would see some pullback, but nothing scary (in my opinion). Let’s take a look at the daily chart:
Technically speaking, NIO could drop all the way down to $ 29.40 and this would still be acceptable, and the bull trend would be intact. Any pullback to this level would be just opportunity to buy, because the odds are that it’ll just get back up to new levels.
If we don’t see a clear reversal sign, the trend will persist, according to Charles Dow, of course: Dow Theory 6th tenet - Trends Persist Until a Clear Reversal Occurs.
And so far, no clear reversal sign ahead. But I would keep my eye on the red line in the hourly chart, just in case.
By looking at the weekly chart, we can tell that the trend is extremely strong, from the $ 2 to almost $ 50. If I were on NIO, I would just set a trailing stop in the weekly chart, always under the previous week’s low. This is another interesting strategy to use.
The volume is increasing a lot, giving fuel to the bull trend, and so far, NIO is performing very well.
And if you liked this analysis, please, support it! And follow me to keep in touch with my daily updates!
Trade well.
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