NIO Bullish + Interesting Support
Updated
Taking a look at NIO, it is set up to do well given the current US administration. NEO is a Chinese holding company specializing in EV's or electric vehicles. China is gathering plenty of economic power, and NIO also has plans to set up shop in the US - competing with Tesla.
Looking at the 1 Hour chart, we first see that the recent breakout from about $57 to about $62.5 had a nice fib retracement to the golden 0.618 range (perfect tap) which set up the beginning of our rising support trend line - take a look at the 4 hour chart too see how I got those numbers. NIO then retested that trend line a second time before EOD friday, confirming a potential pennant chart pattern should it hold.
Next, that second trend line test (where the stock is currently at), the price met the 50-period moving average (GREEN LINE) confirming its successful retracement, allowing it to prepare for its next jump.
Lastly, I carved out two potential RESISTANCE trend line (see the Yellow and Green lines resting above the current price. based on how you cut this, NIO either already broke out of the yellow trend line, and is retesting the zone as a new support, OR NIO is preparing to Retest the Green trend line. Regardless, the pennant/flag formation can create enough upward pressure to break either of these trend lines, especially where they intersect at about $62
Buy - in - $59.76
SL - $58.56 (Stop is tight, found below the support created by the purple arrow)
TP - $64 and above
Risk per share: $1.20
Reward per share: $4.24
Looking at the 1 Hour chart, we first see that the recent breakout from about $57 to about $62.5 had a nice fib retracement to the golden 0.618 range (perfect tap) which set up the beginning of our rising support trend line - take a look at the 4 hour chart too see how I got those numbers. NIO then retested that trend line a second time before EOD friday, confirming a potential pennant chart pattern should it hold.
Next, that second trend line test (where the stock is currently at), the price met the 50-period moving average (GREEN LINE) confirming its successful retracement, allowing it to prepare for its next jump.
Lastly, I carved out two potential RESISTANCE trend line (see the Yellow and Green lines resting above the current price. based on how you cut this, NIO either already broke out of the yellow trend line, and is retesting the zone as a new support, OR NIO is preparing to Retest the Green trend line. Regardless, the pennant/flag formation can create enough upward pressure to break either of these trend lines, especially where they intersect at about $62
Buy - in - $59.76
SL - $58.56 (Stop is tight, found below the support created by the purple arrow)
TP - $64 and above
Risk per share: $1.20
Reward per share: $4.24
Note
looks like it had fallen more than expected. hasn't hit SL yet for me. Looks like we will have one more chance at a break through that tough resistance. It has been tested 3 times now already, lets hope it break on the fourth. I will be monitoring this one and raising my stop should NIO move to retest
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.