Nio Has an Ascending Triangle Above Old Highs
Electric-car maker Nio has been one of the most explosive stocks in the last three months, more than tripling since the end of May.
However, it’s been rangebound since early July as it digested a lot of those gains, and now the price action is starting to resemble a bullish ascending triangle.
NIO peaked around $15.30 on a big high-volume candle July 8. It’s flirted with that level a few times since, but never closed above it. Meanwhile it’s made successively higher lows, creating the potential for a breakout through resistance. On Monday, it pushed back toward that area and had its second-highest closing price of all time.
Volatility has also been squeezing in that time. Bollinger Bands Width was just 0.22 yesterday, its narrowest range since May 26.
In addition, there’s a level to watch. NIO’s recent consolidation has taken place around the previous highs from September 2018, shortly after its initial public offering. A bullish basing pattern above old resistance is also potentially bullish.
Finally, the fundamentals have been strong. NIO tried to break out after a strong report on August 11, but sellers quickly smashed it back lower. Now it’s had time to digest those gains and held its range.
Yesterday, Tesla had a potential reversal pattern and its stock split is around the corner. Will this be time for NIO to move into the fast lane?
However, it’s been rangebound since early July as it digested a lot of those gains, and now the price action is starting to resemble a bullish ascending triangle.
NIO peaked around $15.30 on a big high-volume candle July 8. It’s flirted with that level a few times since, but never closed above it. Meanwhile it’s made successively higher lows, creating the potential for a breakout through resistance. On Monday, it pushed back toward that area and had its second-highest closing price of all time.
Volatility has also been squeezing in that time. Bollinger Bands Width was just 0.22 yesterday, its narrowest range since May 26.
In addition, there’s a level to watch. NIO’s recent consolidation has taken place around the previous highs from September 2018, shortly after its initial public offering. A bullish basing pattern above old resistance is also potentially bullish.
Finally, the fundamentals have been strong. NIO tried to break out after a strong report on August 11, but sellers quickly smashed it back lower. Now it’s had time to digest those gains and held its range.
Yesterday, Tesla had a potential reversal pattern and its stock split is around the corner. Will this be time for NIO to move into the fast lane?
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