NIO has been quite volatile in the last few weeks. After the huge EV run throughout November, the profit-taking began, greatly increased by the delisting bill that has been passed, followed by the 60M offering with $39 a piece. We went from mid 50s towards early 40s where we are today. I think we may have just reached the bottom, which may bring another breakout in the upcoming days. My assumptions are based on the following:
- RSI is currently at 45.45. Last time we were at these levels was 9th of April, 2020.
- Williams %R reached -86.41 at close today, which points to NIO being oversold. Last time we went below -80 was on 22nd of May, 2020.
- Aroon Up has almost reached the bottom (currently at 7%), while Aroon Down is heading towards it since 2nd of December (currently at 42.86%). Assuming Aroon Up bounces off the bottom, we should be looking at a trend reversal.
- Volume has been systematically decreasing during the last few weeks
- We are almost at the support levels ($38.78) of the aggressive uptrend Nio has been riding since 24th of September, 2020. The short term support established on 10th of November is at $38.14, which we have bounced off nicely on 2nd of December.
Considering the above, I believe we will have another breakout in the upcoming days, specifically in the next 2 weeks. I've drawn two declining white trend lines (solid and dashed), which point towards the breakout zones. Assuming the declining trend started on 24th of November is defined by the dashed line, we may see a breakout before 18th of December, otherwise assuming it is defined by the solid line, we may see a breakout before 23rd of December.
DISCLAIMER - Just my few thoughts on the topic, I wanted to share. Most definitely not your financial advice of any sort.
- RSI is currently at 45.45. Last time we were at these levels was 9th of April, 2020.
- Williams %R reached -86.41 at close today, which points to NIO being oversold. Last time we went below -80 was on 22nd of May, 2020.
- Aroon Up has almost reached the bottom (currently at 7%), while Aroon Down is heading towards it since 2nd of December (currently at 42.86%). Assuming Aroon Up bounces off the bottom, we should be looking at a trend reversal.
- Volume has been systematically decreasing during the last few weeks
- We are almost at the support levels ($38.78) of the aggressive uptrend Nio has been riding since 24th of September, 2020. The short term support established on 10th of November is at $38.14, which we have bounced off nicely on 2nd of December.
Considering the above, I believe we will have another breakout in the upcoming days, specifically in the next 2 weeks. I've drawn two declining white trend lines (solid and dashed), which point towards the breakout zones. Assuming the declining trend started on 24th of November is defined by the dashed line, we may see a breakout before 18th of December, otherwise assuming it is defined by the solid line, we may see a breakout before 23rd of December.
DISCLAIMER - Just my few thoughts on the topic, I wanted to share. Most definitely not your financial advice of any sort.