NIO: Should we PANIC or not?

Hello traders and investors! A little late, but here we are for another NIO analysis! Today is Friday, so let’s do a complete study here.

First, the hourly chart is quite bearish, as the resistance around the 21 ema didn’t allow the price to trigger the Pivot Point at the green line, which we discussed yesterday. If you missed the link to my previous analysis, the link is below as usual.

Now, NIO did nothing but retested its support level at the red line around the $ 42 again. The stock is reacting, but let’s keep in mind that we are inside a Trap Zone now.

The price is trapped between its support at the red line and resistance at the 21 ema (which is getting closer). At some point, NIO will have to explode in some direction, the question is, would it be up or down?

Let’s see the daily chart:


The Piercing Line pattern is still valid, but the Gift pattern isn’t. The support at the purple line would probably hold the price if it drops, and I still see no reversal signs at NIO so far.

The last 2 bearish candlesticks have low volume, so there isn’t a real sell-off or people panicking here. It seems the stock is just a little bit tired, and it needs to rest before it resumes the bull trend.

Now, the weekly chart:


I believe that in the worst-case scenario, NIO would retest the 21 ema in the weekly chart, meaning it would drop to the $ 30 region again. And this would be an opportunity to buy/buy more/buy back some stocks.

Remember: In bull trends, pullbacks are opportunities, with enhanced Risk/Reward ratio. Always buy near supports after pullbacks.

But again, this would be the worst-case scenario (or the best-case scenario, for those who are willing to buy NIO at a cheaper price). I see no reason to worry or to panic, as there are no reversal signs and the stock is performing very well, with several supports around.

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Thank you very much, have a great weekend.