We detected this bearish divergence on the RSI just in time! Now NIO hit the first target we talked about yesterday, but we have some things to say before anything else.
NIO has been duplicating the amplitude of its congestions each day, as the black arrows show us. And this indicates that the trend is bearish, at least for now. But NIO was oversold today, and the RSI almost hit the 30 level.
This made the stock go up, along with the 20ma in the 4h chart:
Yes, we hit the 20ma, but the RSI has an advanced breakdown now (yesterday was only a divergence).
This makes me wonder if we’ll see a correction to the 20ma in the daily chart or not. In theory, the 20ma in the 4h chart should hold NIO, but the RSI tell me it can drop a little bit more.
All of this makes me cautious about NIO, and I’ll wait for a better opportunity to trade it.
If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉.
See you soon,
Melissa.
NIO has been duplicating the amplitude of its congestions each day, as the black arrows show us. And this indicates that the trend is bearish, at least for now. But NIO was oversold today, and the RSI almost hit the 30 level.
This made the stock go up, along with the 20ma in the 4h chart:
Yes, we hit the 20ma, but the RSI has an advanced breakdown now (yesterday was only a divergence).
This makes me wonder if we’ll see a correction to the 20ma in the daily chart or not. In theory, the 20ma in the 4h chart should hold NIO, but the RSI tell me it can drop a little bit more.
All of this makes me cautious about NIO, and I’ll wait for a better opportunity to trade it.
If you liked this trading idea, remember to click on the “Follow” button to get more trading ideas like this, and if you agree with me, click on the “Agree” button 😉.
See you soon,
Melissa.
