Hello traders and investors! Tomorrow NIO will report its Earnings, and this may bring some volatility. Let’s see what’s going on here.
First, NIO is failing in trading above the green line at $ 45.28, which was supposed to work as a support, and the 21 ema is flat, meaning the bull trend is weaker. This isn’t a reversal sign yet, and I see this as a natural and healthy movement.
I see this green line as a quite important point for the short-term, as we have been discussing in the past few days. If you missed my previous analysis, the link to it is below, as usual.
The trend is still bullish, and we have no lower highs/lower lows here, and sometimes it is good for it to take a break. But the question is, what point should I start to get worried? It depends on your strategy here, and I would look at the daily chart for more info:
Honestly, if I were on NIO, I wouldn’t be worried at all, as the 21 ema is still pointing up, and we have a bull trend in the hourly and daily chart alike. If it closes above the green line would be perfect, but if it doesn’t, and retest again the 21 ema, I see no reason to panic.
We had a quite bearish sign on Friday, which still could make NIO drop to the $ 37 level, but today’s reaction is frustrating the bears here. And this is one of the reasons I don’t like to short stocks like this. Just like the movement we saw on Tesla this year; we can’t underestimate a bull trend.
I think now t is not the time to buy, as the Risk/Reward is not that interesting. I always prefer to buy near pullbacks, and if the Earnings bring some volatility for us, maybe we can use it in our favor. But for now, I think it is time to manage positions, and increase every time we see NIO doing a pullback.
And if this idea helped you, please, support it! And follow me to keep in touch with my daily updates!
Thank you very much.
First, NIO is failing in trading above the green line at $ 45.28, which was supposed to work as a support, and the 21 ema is flat, meaning the bull trend is weaker. This isn’t a reversal sign yet, and I see this as a natural and healthy movement.
I see this green line as a quite important point for the short-term, as we have been discussing in the past few days. If you missed my previous analysis, the link to it is below, as usual.
The trend is still bullish, and we have no lower highs/lower lows here, and sometimes it is good for it to take a break. But the question is, what point should I start to get worried? It depends on your strategy here, and I would look at the daily chart for more info:
Honestly, if I were on NIO, I wouldn’t be worried at all, as the 21 ema is still pointing up, and we have a bull trend in the hourly and daily chart alike. If it closes above the green line would be perfect, but if it doesn’t, and retest again the 21 ema, I see no reason to panic.
We had a quite bearish sign on Friday, which still could make NIO drop to the $ 37 level, but today’s reaction is frustrating the bears here. And this is one of the reasons I don’t like to short stocks like this. Just like the movement we saw on Tesla this year; we can’t underestimate a bull trend.
I think now t is not the time to buy, as the Risk/Reward is not that interesting. I always prefer to buy near pullbacks, and if the Earnings bring some volatility for us, maybe we can use it in our favor. But for now, I think it is time to manage positions, and increase every time we see NIO doing a pullback.
And if this idea helped you, please, support it! And follow me to keep in touch with my daily updates!
Thank you very much.
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