Hello traders and investors! We have a red world today, but NIO is resisting quite well! Let’s see what the chart tells us.
First, in the hourly chart we have a trendline, which NIO defeated, and it is engaging in a short-term bull trend. This is very good, but we have 2 important pivot points here now, and I would use them to guide myself.
The green line is a possible bullish pivot, and the red line is a bearish pivot. Since NIO just defeated a trendline, the odds favor that the green pivot is going to be triggered, but we must be prepared for different scenarios.
The targets of both pivots are better seen in the daily chart:
Ok, we have the All Time High at the green line, and this would work as a resistance if NIO starts going up again. But since it is quite close to the current price, if we see a bullish pivot in the hourly chart, I believe NIO will do record highs again.
On the other hand, a bearish pivot in the hourly chart has clear targets. The blue line at $ 22.59 is a good support zone if the price drops, and we have a gap down there to drag the price.
It seems there are a lot of buyers though, as the white bars in the volume are quite high during the upside movements. Also, the 21 ema is pointing up, and the trend is clearly bullish in the mid-term.
All of this favors the bulls, but as I said, we must work with different scenarios. And if you like this idea, please, support it! And follow me to keep in touch with my daily studies and analyses.
Trade well!
First, in the hourly chart we have a trendline, which NIO defeated, and it is engaging in a short-term bull trend. This is very good, but we have 2 important pivot points here now, and I would use them to guide myself.
The green line is a possible bullish pivot, and the red line is a bearish pivot. Since NIO just defeated a trendline, the odds favor that the green pivot is going to be triggered, but we must be prepared for different scenarios.
The targets of both pivots are better seen in the daily chart:
Ok, we have the All Time High at the green line, and this would work as a resistance if NIO starts going up again. But since it is quite close to the current price, if we see a bullish pivot in the hourly chart, I believe NIO will do record highs again.
On the other hand, a bearish pivot in the hourly chart has clear targets. The blue line at $ 22.59 is a good support zone if the price drops, and we have a gap down there to drag the price.
It seems there are a lot of buyers though, as the white bars in the volume are quite high during the upside movements. Also, the 21 ema is pointing up, and the trend is clearly bullish in the mid-term.
All of this favors the bulls, but as I said, we must work with different scenarios. And if you like this idea, please, support it! And follow me to keep in touch with my daily studies and analyses.
Trade well!
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