November 26th NIO stock price rose above top downward trend line of a price channel for the first time in 9 months. Price began to move upwards inside a newly formed uptrend price channel from prior lows after testing previous downtrend as support in what appears to be late stage of 2 month cup and handle pattern. While price continues above the downward support trendline it now sits on an important pivot point price of 2.22. While there is room for support the upward channel has now been violated. If that trend line is to be honored price needs to grab hold of it at 2.40 and above to continue it's cup and pattern price projection towards 3.12 target. I am cutting some positions here in case we go back down to the 2.00 or 1.80 support levels. This is no mans land in the middle where buys above 2.25 are looking for 2.40 confirmation of continuation for uptrend in price while sells below 2.20 are looking to raise cash to buy back in on the retest of supports near either 2.00 or 1.80. Both allow for long trades to occur without reentering downtrend. Would rather we stay above 2.22 and continue gap fill of 2.73 and trade two's target of 3.12. As for Trade one the upper price channel was formed on attempt out of down trend on a false break out trade towards 4.00. This stock is also waiting on binary news to either show support for higher prices from favorable terms on new funding of operations beginning the new year or a shot in the arm at equity prices with need to raise additional capital through secondary offering which is certain to dilute current prices. Albeit the new trend of increasing sales and cost cuts measures may soften the blow with better balance sheet numbers duirng 2020 that follow to support rebound in prices.
Trade closed: target reached:
short term trade position target reached. still holding long term position.
Trade closed: target reached:
Trade one's original target of $4.00 also hit. Great set up found at $1.80 for both $3.12 and $4.00 targets. Next one is $4.76 and point and figure even shows a $11.48 target for our longer term positions.
Comment:
Good week with NIO. Biggest position came only a nickel away from third target of 4.76 today with high at 4.71. Price is once again above my original uptrend line from early November and above top of two month price channel. 5.62 and 7.14 are two price targets above that offer the most resistance above 5.20 area. Will remain onboard uptrend train....and start to monitor tactical set ups for support pull backs.
Comment:
still in this one....third target of 5.62 was hit back in January but did not make sale till 5.01 (only 10%). Missed full swing down to 3.50 so keeping 4.00 as floor for scale up to 5.50-6.50. Setting up nicely this week but today was not in-sync.
Reloaded this week above prior trade target of 3.12 @ 3.22.
4.00, 4.76 and 7.12 are now downrange targets with/if continuation of breakout uptrend/price channel.