NIO, or "Cheap Chinese Tesla" as I call it, turned bullish and has entered the long zone today. This is one to watch this month.
Now, I think NIO is a strong play for the next 12 months but there is also the potential it could reverse one last time still.
Or, more likely in my view, a push up, followed by a decent pull back.
I am not a long buyer until the price breaches that red line and you can see where I've placed my alert.
The price is still "short" on the 4HR and above candles but on the 3HR and lower time frames, they all say full steam ahead!
Wait for the breakout before going long.
NIO has moved above support (green box) and could be moving towards the red resistance zone.
But, it's important to bare in mind that Nio had been bearish until today's epic short squeeze in the general market, which raised almost all sectors.
The squeeze was initialed by an exceptionally strong non-farm payroll (aka, jobs) report this morning. Previous months of March and Feb were also revised higher (stronger)
Money flow indicators point show money is entering, meaning the price has likely bottomed out.
Order cancelled
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Price didn't break out so I bought $5 puts instead. So far so good.