NIO received a PT upgrade of 80.3 this morning by Nomura. It has a nice descending triangle on the 4h/Daily chart and it looks like today might be the day to breakout. NIO like Tsla has been cooling off for the last week or two. With EV market being what it is I think NIO can make a move back to 61 lvl in the next two weeks. I will be watching todays price action to swing $60 calls for 2/5 expiration.
- 4h chart is sitting nicely right overtop of 20 & 50 SMA
- we have resistance at the 59.05-59.17 lvls with 30m/1h/2h SMA's if we can clear those then I think we can begin a NIO rally
- We also have a nice LVN at the 59 lvl where the SMA's are, breaking through 59-59.20 lvl will serve as a catalyst through and on to 61-65 range
Will be looking to enter this trade with stop loss at 56.50. Depending on price action I would like to scale into the trade and with confirmation over the previously mentioned SMA's I would add more contracts.
*TSLA is reporting earnings january 27th, this NIO play can also benefit from some solid EV news. never know though because it's TSLA....
*Levels provided by EliteOptions
- 4h chart is sitting nicely right overtop of 20 & 50 SMA
- we have resistance at the 59.05-59.17 lvls with 30m/1h/2h SMA's if we can clear those then I think we can begin a NIO rally
- We also have a nice LVN at the 59 lvl where the SMA's are, breaking through 59-59.20 lvl will serve as a catalyst through and on to 61-65 range
Will be looking to enter this trade with stop loss at 56.50. Depending on price action I would like to scale into the trade and with confirmation over the previously mentioned SMA's I would add more contracts.
*TSLA is reporting earnings january 27th, this NIO play can also benefit from some solid EV news. never know though because it's TSLA....
*Levels provided by EliteOptions
Trade active:
Alright I am in NIO 61 calls at avg $3.39. pretty overextended on smaller timeframes as I write this but ideally close the daily over 59.20 range. good luck all!
Comment:
NIO looks great, gappping up to 64+ range. will sell some calls at open to lock in profits. 65-66 call for roll up would work nicely as well. I expect a pull back in the next few days so I will wait for that.
Comment:
Had 60% at open this morning :). I was able to lock in profits and riding a few calls through the week. I don't like NIO not holding 61.46 lvl and NIO closing right in the LVN hints to me there may be a quick move in the morning if we dont sell lower.
Comment:
NIO basing at this 58-60 range. watch 61.40 resistance, if NIO can get through it swing trade can work targeting 63-66 lvl
Trade closed manually:
NIO ran for two days straight then sellers took over. I stopped out of my remaining NIO calls. Overall a great trade. If it fails 56 puts/short opportunity is pretty good. watch tomorrow to see if buyers step in and reclaim 57 lvl. could be a nice bounce this week if so. TSLA earnings and selling off at the moment after hours so NIO might follow.
Notice how quickly NIO accelerated through that Low Volume Node (LVN) on the volume profile. Behaved beautifully. Im targeting 63.30 range for next profit taking and then will ride the last of my calls.