Hello traders and investors! Let’s take a look at NIO today!
Since it reported earnings, NIO has been in a bearish momentum, and it seems nothing will reverse it. The last support was at $ 38.66, and NIO lost it, but what does this means?
We are still far from May’s bottom at $ 30, and since it dropped that sharply, it has good chances of bouncing back up, but so far, we have no bullish structure in the 1h chart.
On the bright side, we are near the support level, and it seems NIO didn’t lost it completely, as we see early signs of reaction. Let’s see the daily chart for more clues:
We have a bullish candlestick pattern today, which is a start for a possible reversal, and since we are near the previous support level, now is the best time for NIO react. If we close above the $ 38.66 again, it will be a false breakout from the support level, and this will be very frustrating for the bears, as they will be stopped out.
Since we hit the support, the volume increased, and if we see a reaction, the 21 ema will be the target for us. Then we’ll see if it’ll be a Dead Cat Bounce or the beginning of a true reversal.
But I agree that today’s reaction is not the best so far, and we must wait for more information. The situation is very delicate, and how NIO will react in this support will dictate the next big movement.
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I rode it and lost the profits - then let it alone, its performing poorly.
Future_Trading
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Super sharing
GustavoK
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Worn me, when you are thinking jumping in again @Nathan_Black?
mthompson45
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Hi Nathan,
Your analysis is fine! The reason NIO is trading lower is trading lower today is "Shares of NIO Inc. NIO 2.32%
are trading lower following a passenger's death in a NIO vehicle. This is resulting in many calling for stricter self-driving car safety regulations in China.
The vehicle was so badly damaged that technicians on the scene were limited in what they could do in the first instance. NIO had then sent a team to Fujian, according to another report by cnEVpost.
Nathan_Black
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@mthompson45, Yep, this noise is all about news. Thanks for sharing your insights.
Have a good week.
mthompson45
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@Nathan_Black, hey Nathan, I wasn't sure if you heard, one NEWS article can sure mess up an entire company. Not sure what the coming days will bring as China is really putting restrictions on everything. You should see what happened to BABA today. If you are into Puts I would put one on BABA. I'm going to see what happens in the post-pre market and if the conditions still remain I most likely will do $175 Put with the expiration of next Friday or the week after. Take Care.