NIO: The start of a good reaction, but still inside a range.

16 gru 2020

Hello traders and investors! Nio is starting to react, which is a good sign! Let’s see what’s going on here.

First, in the hourly chart, NIO defeated the purple trendline, which was the most powerful resistance NIO had so far, in the short-term. This means that the bearish momentum is finally starting to get weaker. We’ve been talking about this purple trendline for some time now, and if missed my previous analysis, the link to it below.

The 21 ema is finally starting to point up, which is another good sign. Pullbacks to the 21 ema, to the trendline or the red line are expected, and they wouldn’t ruin this new bullish momentum, but NIO must keep trading above these levels for the rest of this week, for the bull trend to consolidate better.

Let’s look at the daily chart now:



There is the idea of a Head and Shoulders chart pattern here, but it is getting weaker as the time passes and NIO’s reaction in the past 3 days are kind of ruining the pattern.

But NIO just found a resistance level in the daily chart, which is the 21 ema, so naturally it will struggle a little bit right now. But the 21 ema is not as important as the pink and purple lines. These still are the most important key levels to watch, as the pink line is a Pivot Point, and the purple line is a strong support and the neckline of the H&S pattern.

It is roughly a $ 10 range, so it would be easy for NIO to keep trapped inside this range for some time. Especially if the volume doesn’t increase.

Let’s watch NIO closely, and if you don’t want to miss any of my future analysis, follow me to keep updated! And please, support this idea if you found it interesting!

Thank you very much.