If prices actually move back to touch 39.50 again, this creates the descending triangle at play. a 4th Touch drastically increases the probability of a downwards break.
A break below the support $39.50 is a disasterous scenario for Nio - I am not predicting this would happen, rather preparing and reacting IF it happens.
a Break below, The descending triangle targets the $22 level - Which rather interestingly is the 0.236 Fibonacci level
Depending on how low the drop takes it can also potentially coincide with the red 200 daily SMA - added confluence of support.
Personally I had stopped my shorts as per previous posts, added long after, and now taken full profits as I'm scared of this potential triangle.
My prediction (predictions are worthless) timewise is a break down around Early Feb 2021.
NIO is high volume, as such if it drops it drops big, the last few days are of price consolidations instead of staging for a bigger drop in my opinion. The average volume is 121 million per day. The big movers are the institutions not small players. There are a lot of pumper on Youtube and they are hilarious, 80 by NIO day. LoL.
I think it will go side ways and 40 is my stop lost level.
Good luck all!
TomSawer
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Stop gambling. Look the fundamentals. Target 22$ :))
JohnRckr
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That looks like a horror scenario for me, maybe time to take the loses and put the money elsewhere?
I think it will go side ways and 40 is my stop lost level.
Good luck all!