Weekly Forecast 15th July 2021
Nio forecast 15th July 2021
Not a stock that I would look at too often because I've noticed that the price for Nio moves similar to TSLA. However, because this period of time is so volatile it has made these EV stocks rather fun to trade as it exposes many opportunities to capitalize on most traders' weak appetite for volatility. That being said, EV stocks have been going through an emotional rollercoaster for the first few quarters of this year as traders shift their money away to other sectors after losing the adrenaline that this sector used to offer. I believe that this sector was over-extended by a large margin due to new and rather ignorant investors (evident from the CCIV mess that occurred) in the past chasing past returns, but hopefully, that won't be the case in the near future.
Looking at the weekly graph, we can observe that the general trend of the stock appears to be looking bearish from the RSI and Stochastic oscillators; other than that there isn't too much information to base a final decision from.
I'm ignoring the daily graph as it doesn't hold anything of significance for my analysis today.
In the hourly graph, we can see that there is definitely a divergence from price and the RSI indicator which suggests that we could expect a change in direction of price. This divergence can also be spotted in between the stochastic and price action. With the two effects, this makes me rather confident that there might be a reversal in price in the near future.
Forecast:
So for my optimistic case, I can see price changing to be bullish where it will test the long-term resistance at 50-52. From there, we will need more candles to determine what might happen.
For my more neutral case, It is likely that the price might take a short drop to the $40 area where it may reverse back to the upside where it will test the resistance.
Take this observation with a grain of salt. This is not financial advice and I am not liable for any decision you make with this information. Happy trading.
Not a stock that I would look at too often because I've noticed that the price for Nio moves similar to TSLA. However, because this period of time is so volatile it has made these EV stocks rather fun to trade as it exposes many opportunities to capitalize on most traders' weak appetite for volatility. That being said, EV stocks have been going through an emotional rollercoaster for the first few quarters of this year as traders shift their money away to other sectors after losing the adrenaline that this sector used to offer. I believe that this sector was over-extended by a large margin due to new and rather ignorant investors (evident from the CCIV mess that occurred) in the past chasing past returns, but hopefully, that won't be the case in the near future.
Looking at the weekly graph, we can observe that the general trend of the stock appears to be looking bearish from the RSI and Stochastic oscillators; other than that there isn't too much information to base a final decision from.
I'm ignoring the daily graph as it doesn't hold anything of significance for my analysis today.
In the hourly graph, we can see that there is definitely a divergence from price and the RSI indicator which suggests that we could expect a change in direction of price. This divergence can also be spotted in between the stochastic and price action. With the two effects, this makes me rather confident that there might be a reversal in price in the near future.
Forecast:
So for my optimistic case, I can see price changing to be bullish where it will test the long-term resistance at 50-52. From there, we will need more candles to determine what might happen.
For my more neutral case, It is likely that the price might take a short drop to the $40 area where it may reverse back to the upside where it will test the resistance.
Take this observation with a grain of salt. This is not financial advice and I am not liable for any decision you make with this information. Happy trading.
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