We see a strong bullish reaction in NIO's shares, which have been rising steadily since last week, when they approached their bottom at $7.
Around $7, we see a region of multiple support, present since June, but which has suffered several attempts to be breached during November and December, without success.
Now, the price has made a strong enough reaction to break through some important medium-term resistance points, such as the 21 EMA, and more recently, the previous top at $8.51.
In doing so, NIO's shares are sending a clear message that the medium-term trend is now upwards, as it is operating above various supports, and breaking through previous resistances.
In theory, the next resistances are NIO's next targets, such as $9.22, or even the gap open at $10.22. Remember, gaps act as magnets when the price reverses a trend.
Although this is a reading for the medium term, it's important to point out that NIO shares still face some problems in the long term, as seen in the weekly chart below:
Clearly, the area around $7 is the most important support here too, but since November 2021, the price has been in a persistent downtrend. We don't see rising tops and bottoms, and the 21 EMA could still be a resistance point, although the price is above it this week.
So, while buying with a focus on the medium term is technically plausible, caution is advised as the weekly chart is still in a downtrend. $蔚来(NIO)$
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