Relevant levels on NIO + Explanation.
Today, we will look at the relevant levels of NIO and what we can expect from them.
The first thing is defining the current context:
a) The price is making a corrective formation (defined by the support zone and the descending trendline)
b) The current drawdown is 59%
c) The current duration of the drawdown is 365 days.
From where we are right now. Which are the next relevant levels for bullish and bearish scenarios?
Bearish Scenario: Currently, the price is below the support zone. IF we don't observe bullish movements above 32 / 33 in the short term, the price may drop towards the next support/resistance zone at 14.00, which means an 80% drawdown.
Bullish Scenario: Assuming the price is able to move above 32 / 33, we may observe a reaction on the descending trendline. That would be a short-term bullish target. However, observing a breakout of the descending trendline could be a positive sign for position traders. It's important to say that when we have the breakout of structures of this size, it is normal to observe some corrections/throwbacks before new massive movements start.
Thanks for reading! Feel free to share your view in the comments.
The first thing is defining the current context:
a) The price is making a corrective formation (defined by the support zone and the descending trendline)
b) The current drawdown is 59%
c) The current duration of the drawdown is 365 days.
From where we are right now. Which are the next relevant levels for bullish and bearish scenarios?
Bearish Scenario: Currently, the price is below the support zone. IF we don't observe bullish movements above 32 / 33 in the short term, the price may drop towards the next support/resistance zone at 14.00, which means an 80% drawdown.
Bullish Scenario: Assuming the price is able to move above 32 / 33, we may observe a reaction on the descending trendline. That would be a short-term bullish target. However, observing a breakout of the descending trendline could be a positive sign for position traders. It's important to say that when we have the breakout of structures of this size, it is normal to observe some corrections/throwbacks before new massive movements start.
Thanks for reading! Feel free to share your view in the comments.
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