NIO: How far could NIO drop?
Hello traders and investors! Nio is dropping today, which makes sense, as we have a Red Friday today, and most indices are dropping around the world. Let’s start our usual Multi Time Frame Analysis.
First, NIO is losing the support level at the red line, frustrating the bullish reaction seen yesterday. The purple trendline is a strong resistance, and NIO failed in defeating it.
Now there is no other support, but the purple line around $ 38 to hold the price. The purple line is an important support, and it makes more sense if we analyze the daily chart:
The purple line is a support since Nov. 10 and was the Piercing Line’s low as well. It seems NIO is going to retest it, but this movement doesn’t seem to be a real sell-off, as the volume is still too low.
While the pink line is the most important Pivot Point, the purple line is the most important support level for the short/mid-term. If NIO loses this purple line, it could trigger a bearish pattern seen in the weekly chart.
This pattern could be a Bearish Engulfing, and it could make NIO drop again to the 21 ema, around $ 30 again.
I wouldn’t be surprised, but I find this scenario too optimistic, as this would be a great opportunity to buy NIO at a cheaper price.
Let’s be careful here and watch NIO’s support levels closely. Therefore, remember to follow me to keep in touch with my daily updates on NIO, and please, support this idea if you liked it!
Thank you very much. Have a great weekend!
First, NIO is losing the support level at the red line, frustrating the bullish reaction seen yesterday. The purple trendline is a strong resistance, and NIO failed in defeating it.
Now there is no other support, but the purple line around $ 38 to hold the price. The purple line is an important support, and it makes more sense if we analyze the daily chart:
The purple line is a support since Nov. 10 and was the Piercing Line’s low as well. It seems NIO is going to retest it, but this movement doesn’t seem to be a real sell-off, as the volume is still too low.
While the pink line is the most important Pivot Point, the purple line is the most important support level for the short/mid-term. If NIO loses this purple line, it could trigger a bearish pattern seen in the weekly chart.
This pattern could be a Bearish Engulfing, and it could make NIO drop again to the 21 ema, around $ 30 again.
I wouldn’t be surprised, but I find this scenario too optimistic, as this would be a great opportunity to buy NIO at a cheaper price.
Let’s be careful here and watch NIO’s support levels closely. Therefore, remember to follow me to keep in touch with my daily updates on NIO, and please, support this idea if you liked it!
Thank you very much. Have a great weekend!
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