NIO: Losing a Critical Support Level!
Daily Chart (Left):
Resistance at $6.05: The price lost the $6.05 level, which was previously acting as support along with the 21-day EMA. This rejection led to the current bearish momentum.
Support Level at $4.97: After failing to hold $6.05, the stock is likely to retest the $4.97 support level. A break below this could signal further downside momentum.
Downward Momentum: The 21-day EMA is curving downward, suggesting increased selling pressure. The bearish candle confirms a rejection from the $6.05 level, indicating a potential continuation to the downside.
Weekly Chart (Right):
Double Bottom at $3.61: On the weekly chart, there is a clearly defined double bottom formation near $3.61. This level served as strong support in the past, and the stock has bounced from this area.
Failure to Hold $7.71: The weekly chart shows a failure to hold the breakout above $7.71, which has led to a sharp pullback. The 21-week EMA is acting as dynamic support, and the stock is now trending downward, seeking this key poínt - which is very close to the $4.97 support observed on the daily chart.
Summary:
NIO appears to be in a bearish phase, especially after the rejection at $6.05. The next key level to watch is the $4.97 support on the daily chart, near the 21-week EMA. If this level fails to hold, there could be a continuation down towards the $3.61 level, where the double bottom pattern on the weekly chart provides a stronger support zone. If the stock can find support and bounce from these lower levels, wwe could see another buying opportunity, but for now, the sentiment is clearly bearish. NIO would have tto react quickly, closing above the $6.05 resistancce in order to reject this bearish thesis.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
Resistance at $6.05: The price lost the $6.05 level, which was previously acting as support along with the 21-day EMA. This rejection led to the current bearish momentum.
Support Level at $4.97: After failing to hold $6.05, the stock is likely to retest the $4.97 support level. A break below this could signal further downside momentum.
Downward Momentum: The 21-day EMA is curving downward, suggesting increased selling pressure. The bearish candle confirms a rejection from the $6.05 level, indicating a potential continuation to the downside.
Weekly Chart (Right):
Double Bottom at $3.61: On the weekly chart, there is a clearly defined double bottom formation near $3.61. This level served as strong support in the past, and the stock has bounced from this area.
Failure to Hold $7.71: The weekly chart shows a failure to hold the breakout above $7.71, which has led to a sharp pullback. The 21-week EMA is acting as dynamic support, and the stock is now trending downward, seeking this key poínt - which is very close to the $4.97 support observed on the daily chart.
Summary:
NIO appears to be in a bearish phase, especially after the rejection at $6.05. The next key level to watch is the $4.97 support on the daily chart, near the 21-week EMA. If this level fails to hold, there could be a continuation down towards the $3.61 level, where the double bottom pattern on the weekly chart provides a stronger support zone. If the stock can find support and bounce from these lower levels, wwe could see another buying opportunity, but for now, the sentiment is clearly bearish. NIO would have tto react quickly, closing above the $6.05 resistancce in order to reject this bearish thesis.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
“To anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.” — Jesse Lauriston Livermore
All the best,
Nathan.
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