Nathan_Black

NIO: Complete Multiple Time Frame Analysis!

NYSE:NIO   NIO INC
Hello traders and investors! Let’s do a complete Multiple Time Frame Analysis (MTFA) on NIO today, looking at 3 different time frames.

First, NIO is trading under the resistance at the green line $ 49.36, and above the 21 ema , this means that NIO is inside a Trap Zone. It could breakout to any direction, but since the trend is bullish , the odds favor the bulls here.

If it loses the 21 ema , then a retest of the red line around $ 42.51 is the most likely scenario.

Now, some of you are concerned about a pullback here, so let’s see the daily chart now:


Ok, NIO is doing what seems to be a time correction, meaning that is moving sideways, waiting for the 21 ema to reach the price, instead of dropping to the 21 ema .

This shows a lot of resilience, and we have no reason to worry. The volume is decreasing during this correction, which is natural. As we discussed in my Tesla analysis, according to the 5th tenet of the Dow Theory, the volume must confirm the trend. A correction with low volume is a harmless and acceptable movement, according to the technical analysis .

In fact, this movement is quite similar to what Tesla did a few months ago. Maybe we'll have the same behaviour here.

Either way, the 21 ema is here to hold the price if it drops more and would be a perfect buy opportunity.

Now, the weekly chart:


The trend is very bullish , and very strong here. Again, pullbacks would just offer opportunities to buy, but so far, we have no pullback sign here.

Maybe if NIO loses the previous week’s low, we would see a decent pullback, but this is just a theory. Now is time to manage positions here, and keep in mind the points mentioned in this analysis.

And if this idea helped you, please, support it! And follow me to keep updated about my ideas on NIO , TSLA and other stocks.

Thank you very much.
Have a great weekend.

Comments

Great post like always, Nathan! Love that you enoclopoated the 5th tenet of dow theory hahaha
+1 Reply
@RaftoO, Thank you very much, man! I'm glad you liked it!
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Awesome!!
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Good analysis and also take a look at NIU which is in a similar momentum but doesn' t have the media spotlight of NIO. They are a chinese electric scooter manufacturer.
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Nathan_Black andyscappinimon
@andyscappinimon, Thanks for the tip. I'll look into it!
Reply
great analysis
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Nathan_Black fair_trade2019
@fair_trade2019, Thanks! :)
Reply
Hopefully it continues to climb...😀
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Nathan_Black dalilpony
@dalilpony, Well, it is climbing!
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dalilpony Nathan_Black
@Nathan_Black, Red market on Monday. We'll get it back by Friday....
Reply
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