Nio. along with most tech and EV stocks has aggressively sold off over the last month. But is the selling really over or was this a dead cat bounce? I for one hope for the former. Here is what I am looking for in Nio from a technical standpoint:
- Bounce off the $31.86 level with candle close just below the 180 EMA (Happened)
- Green Candle break above $38.59 level with candle close above 180 EMA (Happened)
- Green candle close above $42.76 (38.2% fib level)
- Consolidation of candle bodies between $42.76 (38.2% retracement) and $46.12 (50% retracement) with buying pressure pushing price into $46.12 (50% retracement) - $49.49 (61.8% retracement level).
- Price crossing over 20 EMA and hold as support
- 20 EMA crossing over 50 EMA with heavy volume
I have an open position in NIO with $37.80 avg and I plan to add to my position with a 50% retracement break and hold. I will also add more to my position when price breaks above the 20 EMA and retests as support. The last addition to my position will be if the 20 EMA crosses over the 50 EMA.
- Bounce off the $31.86 level with candle close just below the 180 EMA (Happened)
- Green Candle break above $38.59 level with candle close above 180 EMA (Happened)
- Green candle close above $42.76 (38.2% fib level)
- Consolidation of candle bodies between $42.76 (38.2% retracement) and $46.12 (50% retracement) with buying pressure pushing price into $46.12 (50% retracement) - $49.49 (61.8% retracement level).
- Price crossing over 20 EMA and hold as support
- 20 EMA crossing over 50 EMA with heavy volume
I have an open position in NIO with $37.80 avg and I plan to add to my position with a 50% retracement break and hold. I will also add more to my position when price breaks above the 20 EMA and retests as support. The last addition to my position will be if the 20 EMA crosses over the 50 EMA.