NIO: Key Points and Trading Plan.
Hello traders and investors! Let’s talk about NIO today! It made a scary movement today, let’s see what’s going on here.
First, in the hourly chart, the trend is clearly bullish, and this didn’t change since our last analysis (link below). But NIO did something new today, it couldn’t keep above the green line at $ 43.29, and the 21 ema is flat again, for the first time since Oct. 27.
There’s still the possibility of this movement to be just a sideways correction, but for that to happen NIO must not lose the $ 39.74 again. It did a false breakout from this black line, and it did a hammer candlestick pattern.
If NIO trades again under the black line, it could lose the Hammer’s low as well, and this would trigger a bearish pivot, and surely would lead NIO to a sharper pullback in the daily chart:
A pullback to the 21 ema would be natural and expected and shouldn’t scare anyone here. NIO could even hit the $ 29.40 and the trend would still be bullish.
But if you don’t want to ride a pullback, keep your eyes at the points mentioned in the hourly chart, as if NIO loses them, it’ll drop a little more. Then you can just buy back when it hits one of its supports (21 ema or green line), as the trend is bullish, so the odds would be in your favor, and it could give you a very good trade, with a nice Risk/Reward ratio.
Let’s see if NIO will resist in the hourly chart. So far, it is handling well, but we could use a pullback here for sure. Now, if you liked this idea, please, support it! And follow me to keep updated about my daily analysis.
Thank you very much. Trade well.
First, in the hourly chart, the trend is clearly bullish, and this didn’t change since our last analysis (link below). But NIO did something new today, it couldn’t keep above the green line at $ 43.29, and the 21 ema is flat again, for the first time since Oct. 27.
There’s still the possibility of this movement to be just a sideways correction, but for that to happen NIO must not lose the $ 39.74 again. It did a false breakout from this black line, and it did a hammer candlestick pattern.
If NIO trades again under the black line, it could lose the Hammer’s low as well, and this would trigger a bearish pivot, and surely would lead NIO to a sharper pullback in the daily chart:
A pullback to the 21 ema would be natural and expected and shouldn’t scare anyone here. NIO could even hit the $ 29.40 and the trend would still be bullish.
But if you don’t want to ride a pullback, keep your eyes at the points mentioned in the hourly chart, as if NIO loses them, it’ll drop a little more. Then you can just buy back when it hits one of its supports (21 ema or green line), as the trend is bullish, so the odds would be in your favor, and it could give you a very good trade, with a nice Risk/Reward ratio.
Let’s see if NIO will resist in the hourly chart. So far, it is handling well, but we could use a pullback here for sure. Now, if you liked this idea, please, support it! And follow me to keep updated about my daily analysis.
Thank you very much. Trade well.
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