NIO has rallied hard (like
TSLA
) reacting off the weekly order block and has arrived at an area of strong resistance. Even though it has broken out of the red declining trendline in the daily chart, it doesn't mean that it has made the ultimate bottom. It can make another connector ("the right shoulder"?) and keep extending to the downside for another leg lower like the white arrow.
Whether it would just be a shallow pullback to retest the red declining line or back down to new low is still not clear. But most likely the rally would pause and turn lower here.
I would not short it, not would I open any new longs. However, looking at
TSLA
and the general US indices, another new low is totally possible.
TSLA
) reacting off the weekly order block and has arrived at an area of strong resistance. Even though it has broken out of the red declining trendline in the daily chart, it doesn't mean that it has made the ultimate bottom. It can make another connector ("the right shoulder"?) and keep extending to the downside for another leg lower like the white arrow. Whether it would just be a shallow pullback to retest the red declining line or back down to new low is still not clear. But most likely the rally would pause and turn lower here.
I would not short it, not would I open any new longs. However, looking at
TSLA
and the general US indices, another new low is totally possible.
Order cancelled:
Given the new price action across the market after the FOMC, this idea doesn't work. I remain with my last chart that NIO has bottomed.