NIO: How much more could it drop? Let’s see… for NYSE:NIO by Nathan_Black

Hello traders and investors! Let’s see how NIO is doing today! The stock has been doing very technical movements lately!

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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 bearish structure: It lost the 21 ema 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 daily chart , we see that NIO is at a Dual-Support zone, made not only by the green line, but by the 21 ema as well. If any bullish candlestick 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 bullish leg, the 38.2% retracement is quite close to the green line as well, making it an even stronger support level . In addition, the 61.8% retracement 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 bearish movement, indicating that this is still not a real sell-off. Given how we have several powerful support levels, and how the volume is looking right now, I see drops as opportunities to buy.

If you liked this analysis, remember to follow me to keep in touch with my daily studies, and please, support this idea if it helped!

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