### **Overview**
After establishing a solid structural floor around the **$4.75** base, NIO has successfully confirmed and executed a sharp **Double Bottom [A]** reversal pattern on the 1-hour timeframe.
The breakout has cleared primary local dynamic resistance, and an immediate structural retest has validated the previous resistance zone as active support. Momentum points toward a short-term continuation higher.
---
### **Key Technical Points**
* **The Breakout & Retest:** The clean surge above the **$4.90 ENTRY line** and subsequent hourly holding candles confirm that buyers have successfully flipped this key level into a protective floor.
* **Momentum Support:** The *Machine Learning RSI (Zeiierman)* indicator successfully printed a clear higher low during the second base formation, confirming a bullish shift in underlying momentum. The indicator line still has plenty of upward runway before hitting overbought extremes.
* **Risk/Reward Parameters:**
* **Invalidation / Stop Loss (SL):** $4.85 (tucked safely below the immediate consolidation breakout structure)
---
### **Trading Scenarios to Watch**
* **🐂 Bullish Case (Targeting Overhead Liquidity):** As long as hourly candles continue to close above the **$4.90** pivot, the path of least resistance remains upward. The immediate target is **TP1 at $5.01** (Risk-to-Reward: 1.81), with an extended target sitting at **TP2 at $5.11** (Risk-to-Reward: 3.81).
* **🐻 Bearish Invalidation:** A high-volume loss of the **$4.90** support level would stall immediate momentum. A further drop that breaks below **$4.85** completely invalidates this localized reversal structure.
**Are you riding this NIO breakout back above $5.00, or looking to short the resistance? Let me know your targets below!**
After establishing a solid structural floor around the **$4.75** base, NIO has successfully confirmed and executed a sharp **Double Bottom [A]** reversal pattern on the 1-hour timeframe.
The breakout has cleared primary local dynamic resistance, and an immediate structural retest has validated the previous resistance zone as active support. Momentum points toward a short-term continuation higher.
---
### **Key Technical Points**
* **The Breakout & Retest:** The clean surge above the **$4.90 ENTRY line** and subsequent hourly holding candles confirm that buyers have successfully flipped this key level into a protective floor.
* **Momentum Support:** The *Machine Learning RSI (Zeiierman)* indicator successfully printed a clear higher low during the second base formation, confirming a bullish shift in underlying momentum. The indicator line still has plenty of upward runway before hitting overbought extremes.
* **Risk/Reward Parameters:**
* **Invalidation / Stop Loss (SL):** $4.85 (tucked safely below the immediate consolidation breakout structure)
---
### **Trading Scenarios to Watch**
* **🐂 Bullish Case (Targeting Overhead Liquidity):** As long as hourly candles continue to close above the **$4.90** pivot, the path of least resistance remains upward. The immediate target is **TP1 at $5.01** (Risk-to-Reward: 1.81), with an extended target sitting at **TP2 at $5.11** (Risk-to-Reward: 3.81).
* **🐻 Bearish Invalidation:** A high-volume loss of the **$4.90** support level would stall immediate momentum. A further drop that breaks below **$4.85** completely invalidates this localized reversal structure.
**Are you riding this NIO breakout back above $5.00, or looking to short the resistance? Let me know your targets below!**
Trade closed: target reached
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.