NIO longs for an earnings play
Updated
NIO has earnings coming up at a good time when the China ecomony is recovering from
the lockdown and holding interest rates down to support economic expansion. NIO is also very
busy selling their EVs in Scandinavia. On the one-hour chart, NIO has risen above the demand/
support zone and seems to be retracing the recent downtrend. The indicator shows momentum
and RSI to have crossed the 50 line but money flow is lagging. Volume is picking up in the last
few weeks and price has now crossed over the POC line of the volume profile as another sign
of bullish buying pressure and dominance. I will trade a long trade in NIO now before the
earnings expecting good price action and volatility will yield decent profit in the trade.
The stop loss will be below the support zone and the first TP at $8.00 being the top of the
high volume area of the profile while the 2nd TP will be $8.50 and final at $9.00.
the lockdown and holding interest rates down to support economic expansion. NIO is also very
busy selling their EVs in Scandinavia. On the one-hour chart, NIO has risen above the demand/
support zone and seems to be retracing the recent downtrend. The indicator shows momentum
and RSI to have crossed the 50 line but money flow is lagging. Volume is picking up in the last
few weeks and price has now crossed over the POC line of the volume profile as another sign
of bullish buying pressure and dominance. I will trade a long trade in NIO now before the
earnings expecting good price action and volatility will yield decent profit in the trade.
The stop loss will be below the support zone and the first TP at $8.00 being the top of the
high volume area of the profile while the 2nd TP will be $8.50 and final at $9.00.
Trade closed: target reached
NIO is sideways. Patiently holding for now.
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