$NIO Inc.(NIO)$  and $XPeng Inc.(XPEV)$  share prices exhibited a synchronised pattern, suggesting a potential for further upward movement.

The Gap and Retrace:

The story begins with a "gap up," where the opening price on a given day is significantly higher than the previous day's closing price. This indicates strong buying pressure at the open. Interestingly, both Nio and Xpeng experienced this bullish gap.

However, the market rarely moves in a straight line. So, after the initial surge, both share prices retraced, meaning they pulled back slightly from their highs. This is a healthy and normal price movement, allowing for consolidation and absorbing buying power.

The key point here is that the retracement didn't erase the gains entirely. Both stocks found support and closed higher than their respective opening prices. This "closing above the gap" is a technically bullish signal, suggesting sustained buying interest and potential for further upside.

Swing Low Formation:

The retracement also created a "swing low" in the recent price movement. This refers to the lowest point reached during the pullback. In this case, the swing low acts as a point of reference for potential future support. If the stock price dips again, the swing low becomes a crucial level to watch. If it holds, it reinforces the bullish momentum.