NIO: Is it now ready to fly?Hello traders and investors! Let’s see how NIO is behaving today.
First, in the 1h chart, it is sitting right at a very important key point , which is the purple line at $ 38.33. This line is not here by chance, and when we talk about the daily chart I’ll explain why. For now, let’s just keep in mind that the purple line, along with the 21 ema made a resistance zone , and NIO has to defeat it in order to fly again.
The trend is still bearish , as we have no higher highs/lows, but if NIO defeats this resistance zone, it could be a good start. But as long as we don’t have any clear reaction, there’s nothing to do, but wait for a safe buy.
Now, let’s see the daily chart:
The thing is, despite the drop, NIO reacted amazingly well last Friday, as it did a very powerful Hammer candlestick pattern , with a very long shadow under the candlestick’s body (with high volume , by the way). This is a good sign. Not enough to trigger a buy opportunity, but good, indeed.
Now, remember the purple line? Here’s why it is so important: It was a support level twice, in Nov and Dec 2020. Now, it could work again, and if it does, we’ll have another challenging point at $ 42.10 (black line), and another sell zone near the green line and the 21 ema.
But all of this will depend on how NIO will close today, and the way it’ll close. If we see a good sign around, it could give us a brilliant opportunity. If not, the bearish sentiment will prevail, and the stock will seek for lower levels.
If you liked this analysis, remember to follow me to keep in touch with my daily analyses on stocks, and if this idea helped you, please, support it !
Thank you very much!
