I am bullish on NIO. 30 % upside
Nio has been hammered by a 50% correction and is consolidating in a pennant shape
Usually penants in a down trend has a higher bearish probability but reasons for betting bullish is as follows:
Technicals:
Support at 0.5 Fib
200 MA / EMA support
Daily RSI reached oversold
daily MACD crossover - possibly bullishness to come
Weekly TD 9 - incomplete but acceptable for reversal trade
Other reasons - 50 % correction, negative sentiment/ fear probably has peaked.
I do not expect prices to reach all time highs, rather a dead cat bounce. I'm long term bearish on this stock unless i see trend continuation.
Usually penants in a down trend has a higher bearish probability but reasons for betting bullish is as follows:
Technicals:
Support at 0.5 Fib
200 MA / EMA support
Daily RSI reached oversold
daily MACD crossover - possibly bullishness to come
Weekly TD 9 - incomplete but acceptable for reversal trade
Other reasons - 50 % correction, negative sentiment/ fear probably has peaked.
I do not expect prices to reach all time highs, rather a dead cat bounce. I'm long term bearish on this stock unless i see trend continuation.
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.