NIO: Pullback or Reversal?
Hello traders and investors! Ok, NIO is dropping sharply today, let's see what's going on here.
Today NIO lost the pink line that we discussed yesterday in my previous analysis, and if you missed it, the link to it is below. This is a sign that the trend is getting weaker, and the next stop would be the $ 42.51.
But this doesn’t mean the bull trend is over, and the daily chart can tell us better:
Ok, NIO lost the pink line as we discussed, but remember that this is a long-term bull trend, and it’ll continue this way until we see a clear reversal pattern. So far, the movement seen in the hourly chart just triggered a pullback in the daily chart.
The 21 ema is an important support for NIO right now, and although it can drop more looking at the hourly chart, if we see any bullish reaction here tomorrow, it would be a great sign.
Also, look at the volume. Since its All Time High it has been decreasing, and it is under average. The volume is a powerful indicator of the reliability of a movement. According to the 5th tenet of Dow Theory, the volume must confirm the trend, and when we see a correction against the main trend with low volume, it is a sign that it is just a harmless pullback.
All of this makes me believe that this is just a pullback, but we don’t know where it’ll stop dropping. The 21 ema in the daily chart and the $ 42.51 are good candidates for a bottom area, but as long we don’t see confirmation around, there’s nothing else to do.
And if you want to keep in touch with my NIO updates, remember to follow me, and support this idea if you liked it,
Thank you very much.
Today NIO lost the pink line that we discussed yesterday in my previous analysis, and if you missed it, the link to it is below. This is a sign that the trend is getting weaker, and the next stop would be the $ 42.51.
But this doesn’t mean the bull trend is over, and the daily chart can tell us better:
Ok, NIO lost the pink line as we discussed, but remember that this is a long-term bull trend, and it’ll continue this way until we see a clear reversal pattern. So far, the movement seen in the hourly chart just triggered a pullback in the daily chart.
The 21 ema is an important support for NIO right now, and although it can drop more looking at the hourly chart, if we see any bullish reaction here tomorrow, it would be a great sign.
Also, look at the volume. Since its All Time High it has been decreasing, and it is under average. The volume is a powerful indicator of the reliability of a movement. According to the 5th tenet of Dow Theory, the volume must confirm the trend, and when we see a correction against the main trend with low volume, it is a sign that it is just a harmless pullback.
All of this makes me believe that this is just a pullback, but we don’t know where it’ll stop dropping. The 21 ema in the daily chart and the $ 42.51 are good candidates for a bottom area, but as long we don’t see confirmation around, there’s nothing else to do.
And if you want to keep in touch with my NIO updates, remember to follow me, and support this idea if you liked it,
Thank you very much.
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