Price action has been moving sideways in a support zone. Volume has been dropping off. RSI indicators showing another possible leg up here.
Broader market sentiment and virus fears present a risk to this trade. Negative market sentiment could cause continued selling. However, the risk profile is still a good one.
It seems that LI is finally and sagely staying at this level for a cool off, because it is windy out there.
Once the buying volume is back, the price will go up as shown by indicator. NIO is making the W. so if NIO is going high in volume LI will too.
Meanwhile I am ready to buy if 29 again.
Lets me discuss basic human psychology.
Most investors only want to invest when stocks are BOOMing and reaching an all time high!
Does this sound like you?
While most investors avoid stocks when they first begin or when they reach their lows.
Some Rules of investing:
1) Buy when the stocks dips at appropriate levels & better yet at early stages - do your due...
Negative short term moving averages
Negative Tom demarks sequential
Also announced a Stock offering - creating more sell supply. (TSLA stock offering = crash, DKNG offering = crash)
The confluences:
The 4 HR and Daily TD support Both @ 24.80
0.786 Fib at 24.50 - Roughly 55% crash from top
50 Daily moving average
Would look to rebuy Li At 24.50ish
