Bullish Fundamentals BUT Bearish Technical analysis Hello fellow NIO investors, in this post I will compare the bullish fundamentals and the bearish technical analysis of NIO. When a stock has such strong fundamentals like NIO, one may be confused on why the technical analysis is bearish.
Fundamentals: BULLISH (new-ish news)
- NIO getting approved to be in the Hong Kong and Singapore markets (by march 10th), that is another 1.4 billion people who are able to now purchase the shares, with that market being unable to form Short positions, it increases the buying power for NIO's stock.
- NIO continuing to rapidly expand open swap stations and NIO houses, expanding in other countries around the world, and waiting for the semiconductor shortage to end (and the completion of their new factories which are huge) so that they can open their factories at full capacity.
- NIO reportedly is experiencing a large amount of Preorders and is selling very quickly in Norway.
- I could go on and on, for more in depth Fundamentals you can see my previous posts.
Technical analysis: BEARISH
- I tried to re-chart NIO many times as it continued to plummet, resulting in two possible chart patterns on the 1D chart. Seen in purple (1) a wedge, and red (2) a descending wedge, sadly, NIO broke the bottom trend line in both patterns.
It is important to not be emotionally attached to a stock, one must look at charts from an unbiased view to get the best results.
I will hold and continue to add to my shares for I highly think NIO will be a $200+ stock.
Remember what Warren Buffett said "It's far better to buy a wonderful company at a fair price, than a fair company at a wonderful price." and that is exactly what Im seeing.
This is not financial advice, this is just what I see happening. Let me know what you think.