Hello traders and investors! It seems nothing can make NIO drop! Let’s study some strategies we can use on it.
First, as we discussed in my previous analysis, the pink line is the most important point in the short-term. It was a resistance, and now, it worked as a support for the stock. The 21 ema is also here to help hold the price, if it drops.
One strategy you may use to help to control your anxiety level is to set a stop gain under the blue line at $ 34.94. If NIO closes under it, we may see a pullback to the pink line or to the 21 ema again.
Another interesting strategy is to stop if NIO closes under the pink line. Because, if that happens, probably we’ll see a sharper pullback in the daily chart:
A pullback to the green line at $ 29.40, or even to the 21 ema would be a healthy and natural movement for NIO, and these are targets if it loses the pink line.
Another strategy you can use is to set a trailing stop at the previous day low. Meaning, if today it loses the $ 31.68, then just book your profits and buy it back when it hits the 21 ema.
So far, neither of these points were lost, and NIO is in a strong bull trend, so we have nothing to worry here, but I hope these strategies will help you. And if you liked this analysis, please, support it! And follow me to keep in touch with my daily studies.
Agreed! Thanks! Sold Calls at the top now on the other side to the pull back re entry point.
JT2QUICK
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Hi Nathan. Seeing how NIO has gone parabolic and naturally will eventually pull back, what's your range on maybe support level area and price that would be a good time to jump back in? Thanks.
TomDen1
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Hey Nathan, NIO's earning is the 17th, how do you think this will fare? It's been skyrocketing and I feel as if the earning will do so well!!
Karam08
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Thanks Nathan.
flyingphtm
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I sold at 34.67 and hoping to buy back at pullback. I am thinking it's not going to pullback. Should I buy at current price ? Incase it surges to 40
Nathan_Black
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@flyingphtm, I see no technical point at $ 34.17, but you must do what makes you comfortable. Either way, set a stop under one of the points mentioned and you'll be fine.