Previous "Bear Market" for this stock was -61% ---> this is considered normal, for such a growth stock (Go check historical corrections of AAPL, and see that regardless of large percent corrections, the stock did new highs).
If the price will go to $26 we would expect the price to hold that level and try to test for the high.
As with the previous patterns, RSI was below 30, now we want the price to confirm with upward momentum.
Great explanation, people need to know that with a massive bullish move there needs to be a large correction. Which doesn’t mean that the stock is “bad” or that the company is failing. NIO is showing great support at the .5 fib which is healthy.