NIO: Important reaction at support level! But be careful - D & WNIO shares reached our first target of $9.22, set in our last public study, the link to which is below this analysis, as always.
We now see a correction down to the 21 EMA, which is to be expected, given that it has just hit a target. In addition, we see a reaction in the price, which could be a bottoming signal if confirmed. Such a reaction makes sense, since the medium-term trend on the daily chart is bullish, and the reasons are simple: 1) The price has been making HH/HL since its last bottom on December 12; 2) The price is above the 21 EMA, which is rising.
I said in my last analysis that swing trades with a focus on the medium term are technically plausible, and that's still true, but remember that all caution is needed, as the weekly chart is still in a downtrend, and this week's candlestick is a reminder of this.
If the price closes below the average on the weekly chart, we could see another top signal, suggesting further bearish continuation for NIO shares. In any case, I see $7 as the main support point, both in the long and medium term.
We see that NIO is trading around a critical point, near mid-term support levels and long-term resistance levels. Whichh one will prevail? It is too soon to tell, we need to see a clear breakout to confirm any thesis. I’ll keep you updated on this, so remember to follow me to keep in touch with my daily analysis, and support this idea, if it helped you.
All the best,
Nathan.
