just a retracement in it's uptrend channel. not worth going against trend, but profit taking at this point. wait and see what happens
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OK guys, things moved even faster than I anticipated. on market opening, Nio seemed to capitulate at around $38. It bounced to, what now is over $47. I dont think that was the bottom. Controversially, I am saying there will be another double bottom or one leg lower. Reason for this is that it didn't hit the bottom of the channel. So after what I consider to be a dead cat bounce, as a gain of over 20% gain in a matter of hours on the underlying asset, profit taking is again perhaps the better idea. aiming for now low to high 30s.
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$48 is todays resistance level
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The picture paints a thousand words. The $48 was tested, fell back, push through, retested on the upside. I see it going to low 50s from here. It may grind higher, skimming the top of the channel for some time, but I will only take best risk reward scenarios when playing options.
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did it bottom? It's $46.34 as I speak. I will not buy here. If it comes back to $42, I might start a small position, but I maintain that it it has a high likelihood of reaching around $35, where I personally will load up a position to my max allowable single asset position size
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Nearly set up a high risk reward trade. Patience. Wait for a base out on on the trend line and RSI bullish divergence (double bounce on trend line is great). Keep a sharp eye on it and in aftermarket extenended hours price movement.
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In premarket on the 14th December, $39.40 was shortly seen. That was an opportunity to buy. As can be seen since, Nio has got back in and above a vague pennant form. It rettouched the top of the trend formation and may go again.
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I will wait for touch of the trend, before I take position as always
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who got in under $40, we are looking at a resistance level here. If there is a break out, expect a retrace after to the resistance line.
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Just to keep you posted. It's broken through the resistance and has retraced back to the resistance level. From here up, the air is thin and price can wander up quickly. Ill be positioning myself for something of medium weight at this point.