NIO: New record high! How to proceed?
Hello traders and investors! Let’s see how NIO is doing today!
First, NIO did hit our target at the All Time High (ATH) and it even defeated it, which is incredible. The ATH was our target since Dec 29 I believe, and I’ll leave the link to this analysis below. But how to proceed now?
Well, there’s not much else to do, but hold. If you booked profits on Friday when it hit our target, I won’t judge you, but as long as we don’t see any reversal or weakness signs around, the trend will persist.
As far as I know, NIO is doing what is called Time Correction, meaning, the price is accumulating and moving sideways until the 21 ema catches up with it. Since it is a bull trend, we are fine, but every accumulation in the hourly chart may indicate a Spinning Top/Bottom or Doji in the daily chart:
Assuming that NIO will do a Spinning Top or a Doji in the daily chart, if it loses today’s low next, then we may see NIO drop again to a previous support level, maybe to the $ 57.20, or even to the 21 ema in the worst-case scenario.
But this would be just a pullback, and pullbacks in a bull trend are just opportunities. I don’t think it is a good idea to buy now, as the R/R ratio is not good. A good R/R ratio was on Dec 29, when NIO triggered the Piercing Line pattern. Now it is time to manage positions.
Let’s watch NIO closely form now on and try to react properly when the next opportunity come. Remember to follow me to keep in touch with my daily updates and support this idea if you liked it!
Thank you very much! Have a great Monday!
First, NIO did hit our target at the All Time High (ATH) and it even defeated it, which is incredible. The ATH was our target since Dec 29 I believe, and I’ll leave the link to this analysis below. But how to proceed now?
Well, there’s not much else to do, but hold. If you booked profits on Friday when it hit our target, I won’t judge you, but as long as we don’t see any reversal or weakness signs around, the trend will persist.
As far as I know, NIO is doing what is called Time Correction, meaning, the price is accumulating and moving sideways until the 21 ema catches up with it. Since it is a bull trend, we are fine, but every accumulation in the hourly chart may indicate a Spinning Top/Bottom or Doji in the daily chart:
Assuming that NIO will do a Spinning Top or a Doji in the daily chart, if it loses today’s low next, then we may see NIO drop again to a previous support level, maybe to the $ 57.20, or even to the 21 ema in the worst-case scenario.
But this would be just a pullback, and pullbacks in a bull trend are just opportunities. I don’t think it is a good idea to buy now, as the R/R ratio is not good. A good R/R ratio was on Dec 29, when NIO triggered the Piercing Line pattern. Now it is time to manage positions.
Let’s watch NIO closely form now on and try to react properly when the next opportunity come. Remember to follow me to keep in touch with my daily updates and support this idea if you liked it!
Thank you very much! Have a great Monday!
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