RULE OF THUMB, when a stock goes up a lot, expect a "healthy" pullback. What is a healthy pullback? It is when the stock drops and bounces on one of the three main FIB levels. Any drop past the 0.6 FIB level is an UNhealthy pullback. Now NIO has gone up 80% since the previous trend reversal low at $30, we see a pullback to the 0.5 FIB level at the $55 resistance, this is a primal sign of the second run-up. This technical analysis is ignoring the fact that while the stock was 50% down, NIO expanded to Europe, the fundamental and technical analysis on this company is amazing. I'm buying more shares.
This is not financial advice this is just what I see happening, let me know what you think.
This is not financial advice this is just what I see happening, let me know what you think.
Comment:
As expected, it dropped and bounced off the 0.6 fib, and therefore it is a healthy pullback and about to continue its trip upwards