Hello traders and investors! Let’s talk about NIO today! This stock dropped a lot in the past 2 months, but is there any reversal sign ahead? As a matter of fact, yes, and I’ll present you the key points to watch.
In our last study, last week, I explained to you why I didn’t believe that this sell-off on NIO wasn’t real, and I really recommend you read my last analysis in order to understand the logic of my argument (link to it is below this post, as usual).
Now, NIO is reacting very well, and it already engaged a bull trend in the 1h chart. We have higher highs/lows, and the 21 ema is pointing up again. What’s more, NIO found a support level at this Dual-Support Level made by the 21 ema and the $ 38.73. As evidenced by the blue squares, it did two bullish candlesticks patterns here: A Harami and a Bullish Engulfing.
This is good news, but to ultimately reverse the trend, there’s one last thing NIO must do, which is defeat the pivot point at $ 42.05 (orange line). In the daily chart we see better why this is such an important point:
If NIO triggers this pivot point in the 1h chart, NIO will also defeat the 21 ema in the daily chart for the first time since it started dropping, two months ago. And there’s a good chance it’ll reverse. In addition, yesterday’s candlestick was quite bearish, but the volume was too low, indicating a false movement.
If NIO triggers this pivot point, the next target will be the black line at $ 46.28, and this is another very important point because it is the trigger of this huge Double Bottom pattern, which could lead NIO to the $ 67 again.
Unlike my last analysis, now we have some promising signs, but we must wait to see if they will be triggered. And if you liked this analysis, remember to follow me to keep in touch with my daily studies, and please, support this idea with your like!