On the Daily Chart of
NIO
, we can see that it has been creating lower highs (starting from 11th January 2021 @66.99) and consistent lows in the 31-32.5 region. This is a macro descending triangle formation which indicates a potential bearish trend. However, on the RSI Indicator, we can see that NIO is currently at 30.03, which indicates that it is underbought. Also if we take a look at Nasdaq's Daily Chart
IXIC
, we can notice it has been trending upwards in a parallel range and is currently at the bottom support line which indicates upwards movement for the next few weeks.
If
NIO
follows the trend of the entire Nasdaq
IXIC
market then it can move upwards significantly but on the other hand there is a chance it behaves in accordance to the descending triangle pattern and plummets.
If watches carefully
NIO
can be played on both sides profitably, I am currently long on
NIO
on a swing trade with a stop loss at 28 and a take profit of 38+ which might change based on price action.
NIO
, we can see that it has been creating lower highs (starting from 11th January 2021 @66.99) and consistent lows in the 31-32.5 region. This is a macro descending triangle formation which indicates a potential bearish trend. However, on the RSI Indicator, we can see that NIO is currently at 30.03, which indicates that it is underbought. Also if we take a look at Nasdaq's Daily Chart
IXIC
, we can notice it has been trending upwards in a parallel range and is currently at the bottom support line which indicates upwards movement for the next few weeks. If
NIO
follows the trend of the entire Nasdaq
IXIC
market then it can move upwards significantly but on the other hand there is a chance it behaves in accordance to the descending triangle pattern and plummets. If watches carefully
NIO
can be played on both sides profitably, I am currently long on
NIO
on a swing trade with a stop loss at 28 and a take profit of 38+ which might change based on price action.
Trade active:
I have dollar cost averaged into buying more NIO shares as it dipped, i believe that it will be carried upward despite the descending triangle due to the overall movement of the Nasdaq. My average price is 29.62 with a Stop Loss at 24.75 and Take Profit at 38+ which I will change according to the price action as before.