NIO: Overwhelming bull trend! How to proceed?
Hello traders and investors! Let’s look at how NIO is doing today!
It is in a very strong bull trend, and we have two important points now: First, the support at the black line (39.74), which is a quite strong price level, as NIO retested it twice, and it didn’t close under this line at any moment. Second, we have a resistance at the $ 45.28, the previous All Time High, which seems NIO is trying to defeat right now.
The 21 ema is flat, so we must wait for more confirmation, and NIO must keep above this green line for some time, because the market could see it as a false breakout, and NIO would retest the black line again.
Also, the green line is a Pivot Point, that can be seen in the daily chart:
Therefore, it is very important for NIO to keep above it, but the signs are all good here. Yes, a pullback would bring some opportunities, but it is quite hard to see one during such strong momentum. It seems NIO is at the second phase of its trend, the Public Participation phase, according to the Dow Theory.
I never recommend shorting a stock like this, and I like to buy when it is near supports, as the R/R is better. So, now it is time just to manage positions, and look at the points mentioned in this analysis carefully.
If you liked this idea, please, support it! And follow me to keep in touch with my daily analyses.
Stay safe.
It is in a very strong bull trend, and we have two important points now: First, the support at the black line (39.74), which is a quite strong price level, as NIO retested it twice, and it didn’t close under this line at any moment. Second, we have a resistance at the $ 45.28, the previous All Time High, which seems NIO is trying to defeat right now.
The 21 ema is flat, so we must wait for more confirmation, and NIO must keep above this green line for some time, because the market could see it as a false breakout, and NIO would retest the black line again.
Also, the green line is a Pivot Point, that can be seen in the daily chart:
Therefore, it is very important for NIO to keep above it, but the signs are all good here. Yes, a pullback would bring some opportunities, but it is quite hard to see one during such strong momentum. It seems NIO is at the second phase of its trend, the Public Participation phase, according to the Dow Theory.
I never recommend shorting a stock like this, and I like to buy when it is near supports, as the R/R is better. So, now it is time just to manage positions, and look at the points mentioned in this analysis carefully.
If you liked this idea, please, support it! And follow me to keep in touch with my daily analyses.
Stay safe.
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