Trading inside a consolidation! 😒
Now the situation is getting clearer on NIO to me. I see a consolidation between the 42.34 and the 40.89.
To the side it breaks, we’ll see a good movement next.
If NIO breaks the upper line, then the 46 is the next stop. If NIO breaks downwards, then the 20ma is the target. It seems simple enough to me, but it is not over yet!
The problem is the RSI. We have a small divergence, and it is overbought. This makes me more comfortable with the idea of a downwards breakout to the 20ma. Then the RSI will cool down, and the risk-reward ratio will increase too.
If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉.
See you soon,
Melissa.
To the side it breaks, we’ll see a good movement next.
If NIO breaks the upper line, then the 46 is the next stop. If NIO breaks downwards, then the 20ma is the target. It seems simple enough to me, but it is not over yet!
The problem is the RSI. We have a small divergence, and it is overbought. This makes me more comfortable with the idea of a downwards breakout to the 20ma. Then the RSI will cool down, and the risk-reward ratio will increase too.
If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉.
See you soon,
Melissa.
Related publications
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.