Johnstonks8

Johnstonks8

NIO is currently in a downtrend much like the rest of the tech sector due to the semiconductor chip shortage, therefore, I am not seeing NIO's price drop as a reflection of the company. However, through the tribulations of the pandemic, market correction, chip shortage, and so on... NIO has continued to thrive and not only released news of a new cheaper EV to...

Johnstonks8

NIO has been on a roll the past couple of days, it definitely needed a pullback. I see NIO retesting the 200 MA which perfectly happens to be at the 0.5 fib retracement and then continuing its bullish path towards $50. I do not see this as anything more than that so I am not worried. This is not financial advice, this is just what I see happening. And for my...

Johnstonks8 Updated 

Everyone keeping up with NIO's chart is seeing this triangle, however, there seems to be a split on what type of triangle it is and what to expect. I will tell you my opinion on both. -Mentioned in "Technical analysis of the stock market" by John J. Murphy (I reference this book a lot, great read), it states that volume plays a great role in determining which way...

Johnstonks8

Before I get into what happened I must underline the concept of patience and the need to wait for a confirmation. Emotional traders with FOMO (fear of missing out) are the ones that lose in this game. NIO seems to have broken the top trendline in the triangle. This is amazing news, however, since it is a green day in the tech market, we shouldn't get too excited....

Johnstonks8

Let us leave the large measured move formation hypothesis until we see more candles to confirm or disprove the theory (if you don't know what I'm talking about check my last couple of posts) This is not a descending trinagle, this is not a symmetrical wedge, this is a falling wedge. Falling or rising wedges are mainly used as continuation patterns, however, in...

Johnstonks8

The good: - May look like a large measured move pattern on the daily chart - 200 MA bounce - 0.5 fib bounce - triple bottom on the $35 support - great news (NIO partnering with the world's second-largest gas station company to implement their battery swap 2.0 stations, expansion to Europe, and partnering with Ford) - This MAD green trendline goes way back....

Johnstonks8 Updated 

What I like the most about ETH is that it is very trend following. It just broke the wedge that it has been bouncing between for weeks and is rallying up as expected. However, the $2570 is the last obstacle in the way if it is broken we can see ETH push towards the $2900+ and into new price discovery and new all-time highs. Remember, this is not financial advice,...

Johnstonks8

Sometimes it's a good idea to just erase everything and take a look from a different perspective. With everyone talking about the triangle (including myself) I wanted to zoom out and see if I notice anything else. I saw a clean channel up, a clean channel down to a perfect 0.5 retracement, and what may be another clean channel forming (hopefully if the wedge...

Johnstonks8

I have covered the technical analysis on NIO's current situation in previous posts you can check them out on my page. These include the 200MA support, price finding resistance at the 0.5 Fibonacci level, volume patterns in the triangle suggests it will be breaking the top trendline and reverse the bearish trend, it seems to be all lined up. However, one needs to...

Johnstonks8

What is seen as a double bottom and possibly a descending triangle on the daily chart, may actually be a symmetrical triangle (wedge) as seen on the hourly chart. I see three outcomes this week: 1: The market breaks the top of the triangle and shoot upward. (Dark green arrow) 2: The market bounces of the $35 support creating a triple bottom. (Light green...

Johnstonks8

Let's start with the bad news: The double bottom will be confirmed if the resistance at $46.06 is broken (the peak between the two bottoms) until then it is a "potential" double bottom. From the pattern NIO is showing, this could not be a double bottom at all, in fact, it may even be a ( bearish ) continuation pattern called descending triangle. If the $35...

Johnstonks8

The whole tech market has shown a major bearish movement due to a couple of reasons such as: healthy and needed pullbacks, the effect of printing money, and the semiconductor shortage. However, as mentioned in "Technical Analysis of the Financial Markets" by John J. Murphy, market action discounts everything. And from what I am seeing from NIO's chart (market...