NIO had a rough start to the week on Monday as did many Asian equities. But somehow it appears that NIO could be on the brink of a successful back test of a key support area that could hold as the key to NIO running to higher prices in the future and sustaining it.
Keep an eye on the open tomorrow morning. If price opens above $39.27, this could be a great entry for a long. Anything below this price level instantly flips this asset to bearish as shorting would again be the most attractive bet for the foreseeable future. A break and confirmed daily candle close below $39.27 would be a violation of the .236 fibonacci level, and that could insinuate price action to downside for a retest of the previous swing low at $30.71.
The risk/reward on this at the moment is perfect however, as we are nearly exactly at our support. So stop losses can be a little loose due to the room for error we now have. Again, most of this will depend on where NIO price is at come opening bell.
Should this $39.27 level hold, we could be looking at a 13% move to our first target at $55.57.
Ultimately, a move back to the all time high, which represents X of this retracement, makes this a potential 70% profit trade.
Keep an eye on the open tomorrow morning. If price opens above $39.27, this could be a great entry for a long. Anything below this price level instantly flips this asset to bearish as shorting would again be the most attractive bet for the foreseeable future. A break and confirmed daily candle close below $39.27 would be a violation of the .236 fibonacci level, and that could insinuate price action to downside for a retest of the previous swing low at $30.71.
The risk/reward on this at the moment is perfect however, as we are nearly exactly at our support. So stop losses can be a little loose due to the room for error we now have. Again, most of this will depend on where NIO price is at come opening bell.
Should this $39.27 level hold, we could be looking at a 13% move to our first target at $55.57.
Ultimately, a move back to the all time high, which represents X of this retracement, makes this a potential 70% profit trade.