Today we will make an update on a previous idea we developed on NIO (Link to related ideas)
First, let's start with the big picture, the daily chart.
-Here, we can see that the price found a strong level on the convergence area of the ascending trendline and the support zone. That's our main structure to support the bullish idea; now, we want to see the targets and how to trade them.
-On the 30 minutes chart, we are using a previous situation as a filter to validate our current view. We have a broken descending trendline broken + Flag pattern on the outside of the broken trendline, and finally, a bullish impulse towards the next resistance zone.
-We can observe in the current situations a lot of similarities with the previous one.
-We have the price bouncing from a major level on a higher timeframe, and we can see a corrective structure being formed on the outside of the descending trendline. Now we want to see a much bigger Flag pattern (similar size to the one that happened before). IF that happens, we will define our activation level on the green horizontal line. Our invalidation level will be below the flag pattern, and the target we will use for this movement is the next resistance zone.
-Take this as an idea that is not completed yet. We will make a new post when we consider that the structure is ready to trade.
great jobs! I have a $45 CALL for June 18, 2021. what do you think about it?
ThinkingAntsOk
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@competitiveSea48650, Thanks for your comment. Based on the price of your options, the expiration date, and the analysis we have, we think it's a pretty good deal. Best of lucks on that!
apbishop2002
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I have a spread for 40, 50 and 60 expiring June 18th. What do you think? Buying 40, selling 50 and buying 60. Thank you
sonyfxtrading
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Excellent insight! thank you for sharing with us!
ThinkingAntsOk
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@sonyfxtrading, It's our pleasure; thanks for your comment!
LikeTrade
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Appreciate the work!! Thanks for the analysis!
ThinkingAntsOk
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@LikeTrade, Your welcome! Thanks for taking the time to comment.
vincitquisevincit95
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very helpful thank you for taking the time to help others