Watch for either breakout or breakdown soon
Falling Channel Line, Short on Rally
Short the rally at the top of Channel
Mountain Top Formation, Rejection of Falling Channel, Could not pull through 0.618 Fib Retrace, Major Head and Shoulder
Rejected Falling Channel for 3rth Time. Falling Channel intact.
Can go either direction soon after consolidating in the pennant
Technical : 1st support price tart under $21. Stoch RSI and Squeeze Mod still heading lower. Fundamental Risk : Continued production constraint, 2nd HK IPO creating further dilution, increased CAPEX from new factory, possibly an upcoming stock offering or debt offering (Nio has traditionally done an offering once every few months), delisting fears still in the air.
Major Head & Shoulder Pattern detected. Short on break of neckline.
Head and Shoulder setup with a minus $29 spread from head to neckline = target downside risk.
Technical is very weak with bearish downward channel. Delisting Risk. European-China relations are worsening. NIO heading to IPO on Hong Kong Stock Exchange which will significantly dilute shareholders by issuing new shares to a new IPO.
Must hold if not, further downside
Bearish Downward Channel