Summary:
I will be placing options calls for NIO to hit $40 a share by 8.27.21 and placing these calls based on candle stick trend, Elliot wave analysis, and trend lines.
Thesis:
NIO will hit $40 based on its current uptrend in candlestick analysis, trend lines show price path and projections based on symmetrical price history. This is a very risky play as the MACD show weakening bullish divergence on the 45min as well as a high RSI. However we have an ATR of 2.80 on the daily which is supported by the Elliot wave trend line at $41.74. The solid yellow bar is an official wave while the dashed line is a drawn in continuation which we have supporting evidence that it can be continued.
Supporting Evidence:
-Average True Range 2.80 ( on daily )
-Candle analysis ( higher highs and higher lows )
-Buy signal initiated 8.20.21
-Elliot Wave formed from private script
Failure Is An Option:
-MACD shows decreasing bullish volume
-ATR is $48.00
-RSI 60.30
Conclusion:
As I consider myself a trend analyst, following the trend is key. I have had past failures due to misleading indicators. I have grown to rely on too many indicators when they are simply a tool and not a fortune teller. In 2020 when I was most profitable I followed the trend and used the indicators as a guide. I guess what I am trying to say as I am not relying on indicators on this call and ignoring the MACD, ATR, and RSI. Would love to hear your thoughts in the comments & make sure to follow and watch this succeed or fail as that is always an option.
I will be placing options calls for NIO to hit $40 a share by 8.27.21 and placing these calls based on candle stick trend, Elliot wave analysis, and trend lines.
Thesis:
NIO will hit $40 based on its current uptrend in candlestick analysis, trend lines show price path and projections based on symmetrical price history. This is a very risky play as the MACD show weakening bullish divergence on the 45min as well as a high RSI. However we have an ATR of 2.80 on the daily which is supported by the Elliot wave trend line at $41.74. The solid yellow bar is an official wave while the dashed line is a drawn in continuation which we have supporting evidence that it can be continued.
Supporting Evidence:
-Average True Range 2.80 ( on daily )
-Candle analysis ( higher highs and higher lows )
-Buy signal initiated 8.20.21
-Elliot Wave formed from private script
Failure Is An Option:
-MACD shows decreasing bullish volume
-ATR is $48.00
-RSI 60.30
Conclusion:
As I consider myself a trend analyst, following the trend is key. I have had past failures due to misleading indicators. I have grown to rely on too many indicators when they are simply a tool and not a fortune teller. In 2020 when I was most profitable I followed the trend and used the indicators as a guide. I guess what I am trying to say as I am not relying on indicators on this call and ignoring the MACD, ATR, and RSI. Would love to hear your thoughts in the comments & make sure to follow and watch this succeed or fail as that is always an option.