Set Alerts for these linesThe art of catching a fallen knife takes lots of patience.
The best time to buy a falling stock is when it starts reversing, and for that you need to have at least 2 confirmation levels for NIO to break.
Before buying in NIO, you would need it to break the resistance trend line CONFIRMATION 1.
Then for a strong trend reversal confirmation you need NIO to break the resistance line CONFIRMATION 2.
Draw these 2 lines and set alerts for them.
Let the trade come to you, don't chase the trade!
NIO trade ideas
Nio Is Now Down Over 50% From Its HighElectric vehicle investors are well aware that NYSE:NIO stock has had a tough 2021, in part because the company had no new models while rivals including NYSE:XPEV and NASDAQ:LI launched new or substantially revised vehicles. But with the ET5, the ET7's launch confirmed for March, and at least one more new Nio expected before the end of next year, 2022 is already shaping up to be a different story. That, and not the latest COVID variant, is what Nio investors should be focused on right now.
Shares of Nio set their all-time high back on Jan. 11, when they traded at $66.99. On this Tuesday, the stock is down over 50% from that all-time high.
What's more important, the company delivered 24,439 EVs in the third quarter of this year, doubling the number of EVs delivered during the same period last year. As of Nov. 30, cumulative deliveries of NIO’s three models have surpassed 156,000 vehicles.
On the other hand, NIO has already penetrated the European market, with Norway serving as a launching platform. Nonetheless, at the NIO Day, the company shared plans for further expansion overseas. The company plans to tap into Netherlands, Sweden, and Denmark in 2022, and by 2025, it plans to expand to more than 25 countries and regions globally. The business data will probably be better in 2022.
Is NIO set for a comeback? The stock is still valued higher than it's competitors in China, Li Auto and Xpeng, so it's possible it may continue to trade sideways for sometime.
Possible drop before long run.You can read my last post on why NIO will hit the 70 dollar price target soon. However, for the short term, It may come back down to hit the third fib level and become oversold at the same time to create a greater motive to buy.
Just keeping all outcomes on the table, not financial advice, do your own research, this is just what I see happening.
$NIO To Make a Comeback to $35 Level?NYSE:NIO Daily Chart
NIO has just bounced off recent descending channel support, with price leaving oversold territory.
Engulfing bullish confirmation candle is a welcome sign to signal a reversal to resistance levels of descending channel, which looks to be around the $35 level.
Overall longs be wary as market is incredibly volatile and while RSI is showing signs of a bullish reversal, MACD has yet to reflect sign of buyers regaining strength.
Lastly, NIO has been on a downwards trend over the past year so conservative longs may choose to stay out as the overall price action calls for a short biased approach.
NIO: Confluence of Factors1. NIO is back above $30 level, does it look like a fake / shake-out to you? It certainly does to look like that to me!
2. Now have a look at the weekly chart and see how both Fibonacci 61.8% level and 100 weekly MA create a nice confluence at the rebound area on the chart.
3. Nice confluence leads to stronger confidence in the price at this level.
4. Conclusion going forward - we are going upward from here!
Due your own analysis and please share comments down below.
-LTT
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.
NIO - mid term overviewNIO is in consolidation for long time after big upwards price action in form of falling wedge/channel.
Currently sitting on weekly support with oversold condition on RSI.
Notice that NIO stock price rise after every visit to/near oversold area, which offers good bounce trade setup here.
Where is NIO's Bottom? 2 Scenarios NIO has been crushed today despite having NIO day yesterday. The overall market today was bearish and bears were in control. I see two possibilities from here. The most probable possibility is another 5% down within this weak and we hit the strong support channel. From there we go to ATH. The other less probable but possible scenario is NIO keeps going down till 22$ that fills a gap in 4H chart and is a major next weekly support. I am more biased in the first scenario. Lets hope NIO finds its bottom this week and we proceed to our next wave towards ATH.
There’s no such thing as the goose lays the golden egg forever!“There’s no such thing as the goose that lays the golden egg forever.”– Jim Simons
I want to start this post with my last Bullish analysis for NIO on January 2nd, 2021 which is by far one of my best analyses ever:
Then my Short analysis when it was 57, January 30, 2021:
And reviewing the Crash forecast for EV makers in February 2021:
The challenge with no winner, June 30, 2021, when the price was 55:
looking at the NIO performance table you see: 16% weekly, -26% monthly, -19% quarterly, -36% in the past 6 months, and -42% loss in the past trading year!
In other words, anyone who bought the stock in the past year and hold has made a loss..!
My new Target for NIO is 10-12 USD/share in the next 6-12 months!
It may sound crazy, But not for those who follow my NIO analysis in the past trading year..!
You can see the most important support (green lines) and resistance (red lines) to watch in the coming days in these charts!
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA , an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.