NIO defeated the Dual-Resistance level we discussed in our last analysis, as expected, and it hit its natural target at $ 42. 05 , which we have been aiming since the beginning of the month. If you missed my previous analysis, the link is below this post, as usual.
Now, in the 1h chart, NIO did a structure: It lost the 21 and it did a lower high/low. On the other hand, it has two important support levels to hold the price, the first one is around the green line at $ 39.34, the second one is around the $ 37.54.
In the , we see that NIO is at a Dual-Support zone, made not only by the green line, but by the 21 as well. If any appears in a place like this, it is a crystal clear buy sign.
I didn’t put it in the chart, because it would be too much, but if you trace a Fibonacci Retracement in the last leg, the is quite close to the green line as well, making it an even stronger . In addition, the coincides with the red line in the 1h chart, making it a good candidate for a reversal too.
What’s more, NIO is dropping, but the volume is quite low during this movement, indicating that this is still not a real sell-off. Given how we have several powerful support levels, and how the is looking right now, I see drops as opportunities to buy.
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