This one has been frustrating the advanced breakouts in the RSI, and it has not doing anything interesting recently. Situations like this are very annoying, but let’s keep in mind that at some point it will do a good movement next.
This is a congestion, and we can break to any direction. But let’s watch the 46.80 and the 44.59.
If we break the 46.80 then fine, NIO will just go higher to the 50 and continue the bull trend. But by losing the 44.59 we might see our stock at 42.67 again, and with a good chance of losing this price level.
For now, there’s nothing to do, but I’ll keep you guys updated. But I agree that movements like this makes us disappointed with NIO, but this drop occurred on many stocks, not only NIO. Personally, I have many other stocks on my radar, just waiting to be traded.
If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉.
I have been loading up on NIO , I guess that was not a good timing. The problem with the market is that moment you sell things turn the other way around
UnknownUnicorn21312077
⋅
@mbelasy, Yes, u are 100%. It is important to use the right risk management in situations like this, to avoid larger losses. Stay safe!
Platinum-Markets
⋅
From 19th July...
CCR_TRADER
⋅
Whats your take on CCIV ( Lucid) another EV start up but from the US. NIO has been a ride of learning so far, im finding your ideas with great insight on this chinese trouble kid ;-)
UnknownUnicorn21312077
⋅
@CCR_TRADER, Im happy to help you! I traded only once, and I don't know it too well, but its cars are amazing imo!
Saharia
⋅
Thanks Melissa for your insight. I would like to know your opinion about option trading? Do you think it’s too dangerous? I’m asking because I lost some money doing options. Do you generally do normal swing trading or also do options? Thanks a lot.
UnknownUnicorn21312077
⋅
@Saharia, Just swing trading! I have nothing against options tho. I think any trading style can be dangerous, even swing trading, but you must put an effort to it, like use a lot of leverage or trade very bad stocks. If you do swing trade with good stocks it is unlikely to lose money long term. That's my view about it.
Saharia
⋅
@Melissa_Amana, thanks Melissa. I was doing investing before and successful on that. But option trading didn’t work and I lost money. I feel swing trading maybe will be good for me in future. I find your analysis quite helpful and always learning from you. Thanks a lot.