NIO - A Hidden Opportunity?
NIO - 
NIO
I have a feeling this will be an unpopular recommendation but the chart is telling there is an opportunity at hand to take a low risk trade.
▫️ NIO is 90% down from $66 ATH
▫️ MAX China FUD (contrarian senses tingling)
▫️ TA allows risk adjusted entry
The Chart
✅ RSI Bullish Divergence
⌛️ Potential green weekly reversal candle now
⌛️ Pending breakout from OBV pennant (coiling)
⌛️ Break above 200 Day (pending)
The chart has a similar pattern to the 2019-2021. Confirmation of the upward trend in 2019 was a break above the 200 day SMA and finding support on it (green circle), this also coincided with a break out of the coiling OBV in 2019 (green circle). These two signals are very useful as at present we are coiling within the OBV in similar fashion. A break out above the OBV resistance line in 2024 could infer the beginning of an upward move 👀
There may be a positive divergence in play here also which helps the bullish argument.
DOWNSIDE PROTECTION
If the OBV breaks to the downside losing the underside diagonal support, we exit the trade. We could watch for a loss of the lower RSI resistance line also but will likely occur in sync.
THE IDEAL ENTRY
Ultimately the best entry would once price finds support on the 200 day SMA. At present that's a close above c.$8.20. Worth noting that $8.20 is just above the Point of Control - the most traded price level in volume terms.
WHY ENTER NOW?
An initial small position can be placed now as we have had a 90% decline from ATH (a 90% discount for a long term investment isn't bad). We also have a positive RSI divergence and we have the OBV and RSI lower support levels to watch to exit to protect ourselves from the downside.
In the event we move higher, break out of OBV coil ,we can then add to the position, and if we break above the 200 MA and find support on it, we can add again. This allows for a low risk initial entry and as the trade moves in our favor we can add to the position as the conviction builds. We will either be quickly stopped out and lose very little or get in early entry with a 90% discount and get to play this long term investment position nicely.
Position size is key here folks, that first position is an amount your don't really care about as we do not have any confirmation of a trend change yet. This is early doors.
PUKA
NIO I have a feeling this will be an unpopular recommendation but the chart is telling there is an opportunity at hand to take a low risk trade.
▫️ NIO is 90% down from $66 ATH
▫️ MAX China FUD (contrarian senses tingling)
▫️ TA allows risk adjusted entry
The Chart
✅ RSI Bullish Divergence
⌛️ Potential green weekly reversal candle now
⌛️ Pending breakout from OBV pennant (coiling)
⌛️ Break above 200 Day (pending)
The chart has a similar pattern to the 2019-2021. Confirmation of the upward trend in 2019 was a break above the 200 day SMA and finding support on it (green circle), this also coincided with a break out of the coiling OBV in 2019 (green circle). These two signals are very useful as at present we are coiling within the OBV in similar fashion. A break out above the OBV resistance line in 2024 could infer the beginning of an upward move 👀
There may be a positive divergence in play here also which helps the bullish argument.
DOWNSIDE PROTECTION
If the OBV breaks to the downside losing the underside diagonal support, we exit the trade. We could watch for a loss of the lower RSI resistance line also but will likely occur in sync.
THE IDEAL ENTRY
Ultimately the best entry would once price finds support on the 200 day SMA. At present that's a close above c.$8.20. Worth noting that $8.20 is just above the Point of Control - the most traded price level in volume terms.
WHY ENTER NOW?
An initial small position can be placed now as we have had a 90% decline from ATH (a 90% discount for a long term investment isn't bad). We also have a positive RSI divergence and we have the OBV and RSI lower support levels to watch to exit to protect ourselves from the downside.
In the event we move higher, break out of OBV coil ,we can then add to the position, and if we break above the 200 MA and find support on it, we can add again. This allows for a low risk initial entry and as the trade moves in our favor we can add to the position as the conviction builds. We will either be quickly stopped out and lose very little or get in early entry with a 90% discount and get to play this long term investment position nicely.
Position size is key here folks, that first position is an amount your don't really care about as we do not have any confirmation of a trend change yet. This is early doors.
PUKA
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