NIO: Trading inside a range!Hello traders and investors! Ok, NIO behaved exactly as we thought it would, and it did the “worst-case scenario” we discussed last week. The link to the previous analysis is below, as usual.
In the 1h chart, it lost our previous support level at $ 37.54, and this made NIO just seek the next support, at $ 34.85 area. In addition, NIO is in a short-term bear trend, doing lower highs/lows , and the 21 ema is above the price (pointing down).
So far, we have no clear reversal sign, but we are above a support level. Let’s look for more clues in the daily chart:
The problem with NIO is that it is inside a congestion , but we have multiple supports/resistances to guide us. It is quite easy to trade ranges: You buy near supports and sell near resistances.
The question is, will NIO stop at $ 34? Or will it seek the $ 32? We can’t tell for sure, as we lack any confirmation. But the volume is looking good already. We have been talking a lot about volume lately, as when NIO drops, it drops with low volume, but when it finds a bottom and starts going up, the volume increases.
Yes, we have some weird signs that are more than enough to make us skeptical about any bearish movement, but again, we need more confirmation. This is the key for a good trade here.
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Thank you very much!
