NIO: Keep an eye on this support level!
Hello traders and investors! Let’s see how NIO is doing today.
First, it dropped today, following the movement seen in the indices. This is fine, and it is a natural movement. What’s more, we have some important points to keep in mind now.
NIO dropped exactly to a dual-support area, made by the green line (previous top) and the gap (pink line). This is a good sign, especially because NIO did a powerful bullish candlestick in the first hour today.
Also, since this gap took some days to close, I see it as a Common Gap, which usually only works as support/resistance for the price.
So far, there are no reversal signs, and NIO will just continue to climb. Yes, it lost the black line we discussed yesterday, but as I’ve said to you, this could just trigger a pullback, which is different from a reversal.
Now I see the dual-support area, along with today’s low, the most important support zone for NIO, as if it loses it, it may trigger a pullback in the daily chart.
But again, it would be just a pullback, meaning, it would be just an opportunity to buy NIO at a cheaper price. What makes me believe that this would be just a pullback, not reversal? The volume.
Yesterday’s bar was bearish, closed under a support, but it had a volume lower than the average. Which indicates that it is more some people booking profits and waiting for the next drop to buy more, than people actually short selling NIO, betting against it.
I still see no reason to worry, as NIO could hit the 21 ema without any problems, before it resumes the trend. And if you liked this idea, please, support it! And remember to follow me to keep in touch with my daily analyses!
Thank you very much!
First, it dropped today, following the movement seen in the indices. This is fine, and it is a natural movement. What’s more, we have some important points to keep in mind now.
NIO dropped exactly to a dual-support area, made by the green line (previous top) and the gap (pink line). This is a good sign, especially because NIO did a powerful bullish candlestick in the first hour today.
Also, since this gap took some days to close, I see it as a Common Gap, which usually only works as support/resistance for the price.
So far, there are no reversal signs, and NIO will just continue to climb. Yes, it lost the black line we discussed yesterday, but as I’ve said to you, this could just trigger a pullback, which is different from a reversal.
Now I see the dual-support area, along with today’s low, the most important support zone for NIO, as if it loses it, it may trigger a pullback in the daily chart.
But again, it would be just a pullback, meaning, it would be just an opportunity to buy NIO at a cheaper price. What makes me believe that this would be just a pullback, not reversal? The volume.
Yesterday’s bar was bearish, closed under a support, but it had a volume lower than the average. Which indicates that it is more some people booking profits and waiting for the next drop to buy more, than people actually short selling NIO, betting against it.
I still see no reason to worry, as NIO could hit the 21 ema without any problems, before it resumes the trend. And if you liked this idea, please, support it! And remember to follow me to keep in touch with my daily analyses!
Thank you very much!
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