First, in the hourly chart NIO is forming a bottom near the $ 57.20, which is a . Also, the stock is inside what we call “Trap Zone”, between the 21 and the at the $ 57.20, and the price is supposed to move erratically when trading in this tight range. Usually, when the price escapes from a Trap Zone, we see a good explosion, the question is to which direction the price will explode.
If NIO explodes downwards, it can easily seek for the $ 50.50, helped by the gaps (yellow rectangles), which work as magnets when the price is trending. On the other hand, if the holds NIO , and if it trades above the 21 again, then the $ 66.75 is the next target.
Let’s see the now:
The bias is clearly , and the drop seen in the past few days was just a pullback, given the low volume, indicating that this is not a real sell-off. So far, today’s is , and this could be a buy sign for many who are out of NIO .
So, we have a pullback to the $ 57.20, the 21 is quite close to the price now too, so we are sitting above a very strong dual-support level. If NIO keeps this way, it’ll be a fantastic sign. The final confirmation that the bull will resume is if NIO defeats the $ 60.08, which is a key point in the hourly chart.
So far, NIO is reacting very well, and if you liked this analysis remember to support it! And follow me to keep in touch with my analyses. You can check my previous NIO analysis in the link below.
Thank you very much.
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