What is seen as a double bottom and possibly a descending triangle on the daily chart, may actually be a symmetrical triangle (wedge) as seen on the hourly chart. I see three outcomes this week:
1: The market breaks the top of the triangle and shoot upward. (Dark green arrow)
2: The market bounces of the $35 support creating a triple bottom. (Light green arrow)
3: The market breaks the bottom of the triangle, creating enough momentum to break the $35 support and fall to the 66% retracement level as the next support around the $27.25 level (Red arrow).
Personally, since the double bottom is not confirmed, the wedge and the descending triangle are both continuation patterns (slight pause before the trend continues which in this case is downwards), sadly I think option 3 is the most likely. However, I see NIO as a $200+ company in the future so I will take advantage of this and see it as a big SALE sign. I'll be increasing my position in this company if it continues to drop.
Remember, no one can know which way the market goes, we can only make an educated guess. Here are the three outcomes that can happen this week. Make a plan for each and trade with strategy, not emotion. Keep an eye open to both the top and the bottom lines of the triangle, whichever the price action will break is the direction it will most likely go.
Hope this helps, comment what you think. Remember this isn't financial advice, do your own research, this is just what I see from the cart.
NIO
1: The market breaks the top of the triangle and shoot upward. (Dark green arrow)
2: The market bounces of the $35 support creating a triple bottom. (Light green arrow)
3: The market breaks the bottom of the triangle, creating enough momentum to break the $35 support and fall to the 66% retracement level as the next support around the $27.25 level (Red arrow).
Personally, since the double bottom is not confirmed, the wedge and the descending triangle are both continuation patterns (slight pause before the trend continues which in this case is downwards), sadly I think option 3 is the most likely. However, I see NIO as a $200+ company in the future so I will take advantage of this and see it as a big SALE sign. I'll be increasing my position in this company if it continues to drop.
Remember, no one can know which way the market goes, we can only make an educated guess. Here are the three outcomes that can happen this week. Make a plan for each and trade with strategy, not emotion. Keep an eye open to both the top and the bottom lines of the triangle, whichever the price action will break is the direction it will most likely go.
Hope this helps, comment what you think. Remember this isn't financial advice, do your own research, this is just what I see from the cart.
NIO
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.