Price is currently at a well-established support (its bounced off this level 5 or 6 times already) at the lower edge of a falling wedge. Fibonacci levels also indicate that support should come in to play here. However, market sentiment is heavily bearish so we could see price break down below this support and begin a downtrend. A falling wedge is generally a continuation pattern so a reversal could signify the start of a strong downtrend. At this point, it's likely best to wait and see how price reacts. If we see a bounce and hold above $29-$30 we would likely want to go long, betting that our wedge resolves upwards. If this level fails to hold, however, we should be going short. This is a crucial point for NIO and basing trades off the direction of resolution could see significant profits in coming months.
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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.