NIO has been seen by critics and investors alike as a knock-off of Tesla. It's a Chinese company with access to huge market, and a lot of Chinese dollars have been betting on the success of this fundamentally flawed company. I love the bullish pennant forming on the daily/weekly charts. There's a few big red flags that scream market manipulation (check out the weekly candle for Jul 13 relative to volume). Price support is somewhere around $5-6, which means that if she breaks out below the pennant, it's going to be a very quick ride down. The longer this stock consolidates at these higher prices, the more bullish I get. That said, one really bad news cycle is all it will take to give us another Jul 13 weekly. Given its close correlation with Tesla, I'm more inclined to trade TSLA, given the inherent problems with buying Chinese stocks at the moment. As much as I question the financial reporting of Tesla, I'm beyond concerned when it comes to this particular company.
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Note: Blue AREA is $TSLA.
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Selling volume has been slowly inching up since end of July, but overall accum/dist is flat. I think a breakout below the pennant will create a frenzy of selling. Short interest is high right now (27% as of 8/11). Staying neutral for now. Looking for big volume break WITH confirmation. That big candle after earnings didn't materialize, but selling eased back into the consolidation pattern. Tomorrow will bring more clarity.