Let's start with the bad news:
The double bottom will be confirmed if the resistance at $46.06 is broken (the peak between the two bottoms) until then it is a "potential" double bottom. From the pattern NIO is showing, this could not be a double bottom at all, in fact, it may even be a ( bearish ) continuation pattern called descending triangle. If the $35 support level is broken this may be bad news in the short term for NIO, we would look at the 66% retracement line for the next support at $28-$29.
The good news:
However, the $35 support is exactly at the 50% retracement which makes it significantly harder to break. If the $35 support is not broken on the third try, this may indicate a triple bottom, a much stronger trend reversal pattern like the triple top we saw Jan-Feb. Usually with trends, if the third time isn't the charm, it's a reversal. Let's keep our fingers crossed.
Not financial advice, just my analytical opinion. Let me know what you guys think.
The double bottom will be confirmed if the resistance at $46.06 is broken (the peak between the two bottoms) until then it is a "potential" double bottom. From the pattern NIO is showing, this could not be a double bottom at all, in fact, it may even be a ( bearish ) continuation pattern called descending triangle. If the $35 support level is broken this may be bad news in the short term for NIO, we would look at the 66% retracement line for the next support at $28-$29.
The good news:
However, the $35 support is exactly at the 50% retracement which makes it significantly harder to break. If the $35 support is not broken on the third try, this may indicate a triple bottom, a much stronger trend reversal pattern like the triple top we saw Jan-Feb. Usually with trends, if the third time isn't the charm, it's a reversal. Let's keep our fingers crossed.
Not financial advice, just my analytical opinion. Let me know what you guys think.
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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.
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.