NIO: Bullish Outlook Market Psychology:
We are currently in the "despair" phase, which is historically the best time to buy and accumulate. This area represents an optimal entry point for long-term investors.
Elliott Wave Analysis:
The price appears to have completed the fifth wave of the Elliott Wave pattern, indicating a potential bottom.
Technical Patterns:
We are observing a parallel channel where the fifth wave of the Elliott Wave converges, signaling the price bottom. Additionally, a deep crab pattern suggests the price could drop to the 0.886 Fibonacci level ($3.88) and potentially reach the 1.618 Fibonacci level ($13.41). After this, a healthy correction is expected, with many buyers likely waiting to enter around the $7 mark, leading to a projected surge towards $35 by next year.
Key Levels:
Major liquidity zones to watch are $6.05 and $9.60, which the price is likely to target soon.
A short squeeze may occur if the price surges and closes above $6.
Indicators:
The RSI on the weekly chart has broken out of a falling wedge, with a similar breakout observed on the bi-weekly chart.
The MACD remains bullish.
Fundamental Analysis:
NIO is currently investing heavily in building a robust infrastructure, expanding in Europe and the Middle East. This phase of burning cash is typical for growth companies aiming to achieve profitability. NIO’s swap stations alone are expected to generate significant profit. Geopolitical tensions, as always, are likely to resolve over time.
Long-Term Outlook:
Patience is key. Media often generates fear to exploit market sentiment. The EV market represents the future, with hydrogen technology following closely. By 2030, it is anticipated that 80% of vehicles will be electric, with China leading this transformation.
Conclusion:
Do not underestimate China’s commitment to climate protection. Although not financial advice, my predictions have a track record of over 90% accuracy.
