Nio has been hammered by a 50% correction and is consolidating in a pennant shape
Usually penants in a down trend has a higher bearish probability but reasons for betting bullish is as follows:
Technicals:
Support at 0.5 Fib
200 MA / EMA support
Daily RSI reached oversold
daily MACD crossover - possibly bullishness to come
Weekly TD 9 - incomplete but acceptable for reversal trade
Other reasons - 50 % correction, negative sentiment/ fear probably has peaked.
I do not expect prices to reach all time highs, rather a dead cat bounce. I'm long term bearish on this stock unless i see trend continuation.
Usually penants in a down trend has a higher bearish probability but reasons for betting bullish is as follows:
Technicals:
Support at 0.5 Fib
200 MA / EMA support
Daily RSI reached oversold
daily MACD crossover - possibly bullishness to come
Weekly TD 9 - incomplete but acceptable for reversal trade
Other reasons - 50 % correction, negative sentiment/ fear probably has peaked.
I do not expect prices to reach all time highs, rather a dead cat bounce. I'm long term bearish on this stock unless i see trend continuation.