Hello traders and investors! It seems NIO is following the sell-off seen in the global markets today. Let’s see what’s going on.
Well, NIO is just doing what we discussed in my last analysis, and since it lost the 21 ema in the hourly chart it triggered the pullback to the $ 57.20, all according to the plan. If you missed my previous analysis, just check the link below. Also, NIO just filled the last gap, making it an Exhaustion Gap, so it is natural that the bull trend will get weaker from now on. But this is not a reversal sign, just a weakness sign.
The daily chart can give us more clues:
The $ 57.20 is not a random number, it was a previous resistance and according to the Principle of Polarity of Technical Analysis, it is supposed to work as a support now, and it seems this is exactly what NIO is doing.
If the pullback persists, it may touch the 21 ema in the daily chart, and this would be just an opportunity, since the chances are that this is just a harmless pullback.
Why do I think it is a harmless pullback? For 2 reasons. First, the trend is bullish, and according to the Dow Theory 6th tenet, trends persist until a clear reversal occurs, and so far, no clear reversal. Second, NIO has been dropping in the last few days, yes, but the volume is too low, indicating that this is not a true sell-off, no one is aggressively selling NIO, but just the market resting. If the volume were bigger, then we would have a different story.
If this analysis helped you, please, support it! And remember to follow me to keep in touch with my studies, and in the links below you’ll find some of my previous analyses.
Thank you very much, have a great weekend!
Well, NIO is just doing what we discussed in my last analysis, and since it lost the 21 ema in the hourly chart it triggered the pullback to the $ 57.20, all according to the plan. If you missed my previous analysis, just check the link below. Also, NIO just filled the last gap, making it an Exhaustion Gap, so it is natural that the bull trend will get weaker from now on. But this is not a reversal sign, just a weakness sign.
The daily chart can give us more clues:
The $ 57.20 is not a random number, it was a previous resistance and according to the Principle of Polarity of Technical Analysis, it is supposed to work as a support now, and it seems this is exactly what NIO is doing.
If the pullback persists, it may touch the 21 ema in the daily chart, and this would be just an opportunity, since the chances are that this is just a harmless pullback.
Why do I think it is a harmless pullback? For 2 reasons. First, the trend is bullish, and according to the Dow Theory 6th tenet, trends persist until a clear reversal occurs, and so far, no clear reversal. Second, NIO has been dropping in the last few days, yes, but the volume is too low, indicating that this is not a true sell-off, no one is aggressively selling NIO, but just the market resting. If the volume were bigger, then we would have a different story.
If this analysis helped you, please, support it! And remember to follow me to keep in touch with my studies, and in the links below you’ll find some of my previous analyses.
Thank you very much, have a great weekend!
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