Bearish Technical Outlook on NIO
Updated
NIO has been bearish for a long time now. We were initially in a megaphone pattern and rising wedge, which resulted in a dump earlier this year. We tried entering back into the megaphone but failed. Now we are in a macro descending triangle and micro head and shoulders pattern.
I do not like the chart, therefore I will rate NIO as a sell on the next test of resistance. If the base of our triangle breaks, then the head and shoulder pattern would have come to fruition.
I do not like the chart, therefore I will rate NIO as a sell on the next test of resistance. If the base of our triangle breaks, then the head and shoulder pattern would have come to fruition.
Note
Upgrade from Sell to Under-perform!It seems to have support at the base. NIO shall attempt to retest the upper resistance trendline of our descending triangle one last time ($44 Target) before more downside.
A breakout from our triangle to the upside will lead to a BUY rating.
I like the fundamentals of this stock, however, Chip Shortage + China FUD...
Note
Outlook correct.Note
Bearish outlook intact. Direct correlation with China's markets...
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