Clear bullish signal! A message for the long term NIO investors Hello, NIO holders and long-term investors. I come with good news.
Now that all the panic sellers and "stupid Money" have sold, NIO is finally in the best buying opportunity for the following reasons:
1. The Falling Wedge has formed.
As mentioned in the famous book "Technical analysis of the financial market" by John J Murphy, a falling wedge forming after a great bullish run is seen as a CONTINUATION PATTERN. Therefore, NIO will CONTINUE its previous bullish trend. Take it more like a large pennant or a bullish flag pattern. (Literally just google the patterns if unfamiliar with them)
This can be confirmed by two things, one, the price action is reacting to the pattern, three touches on both descending trendlines as seen in purple. Secondly, volume is steadily decreasing throughout as represented by the red line on the bottom (this is good). These are both CONFIRMATIONS on the pattern. If you want to play it safe, wait until it breaks the top trendline and retests it before adding a great position.
2. NIO is oversold.
The RSI has been proven statistically as one of the most consistent, accurate, and reliable indication tools. If you notice, every time NIO has been oversold (30 or below on the RSI) it has made a great stride. Usually, in wedges and other "resting/accumulation" patterns, the market would wait until there is a great "motive to buy" usually either being oversold on the RSI or news (sadly as all the real NIO investors noticed that news doesn't really affect this stock for some stupid reason). HOWEVER, NIO has both, oversold and AMAZING news from NIO day.
3. The fundamentals are amazing.
NIO has been approved and started manufacturing in its new NEO PARK in Hefei, estimated to produce 120 THOUSAND units per year which is larger than Tesla's. Now I ask you this, with such an intelligent team behind the company, why build such a massive manufacturing plant if they are unsure if they will be huge in the future? Not to mention they built a whopping 730 swap stations which have swapped over 5.3 million batteries, exceeding this year's estimates.
With over 120% year-over-year growth, amazing revenue, expansion in other countries (NIO day stated that by 2025 they will be in 25 countries), and amazing partnerships, not to mention the new ET5 that beats the Tesla Model 3 (largest EV seller in China) in every aspect especially the battery, NIO's fundamentals are looking solid. Even though the stock has been steadily moving down due to the pattern it must follow, NIO as a company has been drastically expanding knowing that they are going to be massive in the future.
Warren Buffet said, “The stock market is designed to transfer money from the active to the patient.”
He also said, "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
The data is clear, the choice is yours.
This is not financial advice, this is simply what I see happening. Let me know what you guys think and if you agree/disagree with what I've said. Don't rely on information from here, anyone can publish. Read what I've stated and conduct your own research, the book I mentioned is an amazing place to start.
