$NIO Technical Analysis June 16, 2022
$NIO Inc.(NIO)$ Daily chart analysis
https://www.tradingview.com/chart/SPY/cpUAgslv-SPY-6-7-2022/
Enter the matrix, this NIO is not the “one”.
NIO had its fun moving upwards. The Uptrend started Jun.’20 at around 4.00 and continued moving upwards reaching 55.00 by Nov.’20 all while respecting the 50ema.
By Dec.’20, price made a sharp drop and fell to 39. It was caught by 50ema where it rebounded, and price broke out and moved above 55 to all time highs.
Unfortunately, price was unable to hold the breakout and on Feb’21, it fell back below 55 and closed below the 50ema. This deemed the breakout move a “false breakout” and close below 50ema signaled the possible end of the uptrend.
After closing below 50ema, price fell to 34 where it found support. It bounced back above 50ema and retested 55 but failed to make a higher high. Price was shot back down to support at 34.
Price has officially lost the uptrend and has entered a sideways market between 34-55.
After landing at support area of 34, price makes a move upwards but fails and now makes lower high. We now see buyer weakness with lower highs into support area at 34.
Dec.’21, price breaks down from support at 34 and sideways range can now be labeled a Distribution stage.
Price now looks to start Downtrend.
We also see a Death cross with 50ema crossing under 200ema. This signals the bearish conditions in the market
Jan.’22 price enters downtrend and moves from 34 to 13 all while respecting the 50ema.
We then have a pullback to the 50ema which is acting as Dynamic resistance.
To go along with this pullback, we have an overbought Stochastic signal. This was cue to enter trade short.
After that short entry, price proceeds to move down to 11.72.
It has since pulled back to Dynamic Resistance and its currently where we find ourselves.
We also have an overbought Stochastic signal. This is my cue to enter trade short
Confirmed Downtrend + Pullback to resistance + Overbought stochastic = Short entry
Entering trade short
Entry: 19.18
Stop Loss: 22.78
Target: 11.78, +39.06%, 2.19 RR ratio
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Work again later $NIO Inc.(NIO)$