NIO: The beginning of a reversal?

21 апр. 2021 г.

Hello traders and investors! Let’s see how NIO is doing today!

In the 1h chart we have a clear bull trend, as NIO is already doing higher highs/lows. This is a good start but is doing even more reversal signs.

The $ 37.54 was a pivot point, and it was broken today, and it is trading above the 21 ema (which is pointing up now). We also have this purple trendline, which is better seen from the daily chart perspective:



The purple trendline is a very strong resistance, and to worse, the 21 ema is slightly above it as well, making it a Dual-Resistance zone, and if NIO breaks this zone, it’ll be a fantastic sign.

Last week, NIO retested the support at $ 34.85, and now the volume is finally starting to increase, which was one of the main things that was bugging me last week, as we discussed in our previous study (the link to my previous analysis is below this idea, as always).

Although we have several reversal signs around, the trend didn’t reverse in the daily chart yet. It is almost there, but we must see a breakout from the Dual-Support zone, and see the $ 42.05 defeated as well, as this is the most important pivot point for the mid-term.

To summarize, NIO looks promising, and it is just one step from doing something great. And if you liked this analysis, remember to follow me to keep in touch with my daily updates, and please, support this idea if it helped you!

Thank you very much.