NIO Inc.Long
NIO: Bullish Case Study
NIO is looking good for the long haul, based on the activity seen in the past couple of days. After a rough couple of weeks of the stock heading in a downtrend, we see a light at the end of the tunnel for NIO holders. On the 30 minute chart, yesterday was a great day. If we follow the drawn trend line heading downwards, we see NIO grinding across the $35 mark, and practically see a false breakout to the downside at the $34 mark that likely trapped some eager bears. Stepping further back in time quickly to the 29th of March, we see a large green candle bouncing off $35 indicating potential bullish momentum. This was solidified at the open of the 30th, as a bullish Doji bounces off the downwards trend line, and from then on begins flying upwards. This was pivotal, as traders no longer respected the downtrend, thus indicating a reversal to the upside by that decisive Doji and bounce off the trendline. Finally, another indication of a possible bullish continuation off $35 was the divergence seen on the RSI. A bearish pennant was seemingly forming for NIO, but if we look at the RSI for the same timeline, a bullish pennant formed and broke out. This increased my confidence in a reversal to the upside, alongside the bounce of the trendline with a bullish Doji.
Hopefully, this case study was of value, and if you have any questions, please do let me know!
-Simas
Hopefully, this case study was of value, and if you have any questions, please do let me know!
-Simas
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