Hello traders and investors! Let’s do our weekly analysis on NIO now!
First, NIO did a downwards breakout from the Trap Zone, which we mentioned in our last study, and as usually happens after a bearish breakout, it engaged in a short-term bear trend in the 1h chart.
Reinforcing the idea of a bearish bias here, NIO is clearly inside a Descending Channel (purple trendlines), but on the bright side, it seems NIO wants to defeat it, and it is trying to do an upwards breakout.
This is good, and this could be the trigger for a reversal in the daily chart as well:
The Descending Channel in the 1h chart becomes a Flag-like pattern in the daily chart. I also like the way the most recent bullish candlesticks have a good volume, while when NIO drops, the volume is low. This shows to me that NIO could be in the process of an accumulation.
Now NIO has a very strong resistance zone to defeat, a true Triple Resistance Zone, made by the upper trendline, the 21 ema, and the pivot point at $ 46.28. If NIO manages to defeat these points, it has a target at $ 50.40, but honestly, I will aim for the $ 66.95.
But we must see some confirmation first, before jumping into any conclusion! If you liked this analysis, remember to follow me to keep in touch with my daily studies, and weekly updates on NIO! And if this idea helped you, remember to support it!