NIO: Pullback, not a Reversal sign.

Hello traders and investors! Ok, NIO dropped sharply today, let’s see what’s going on here, and if there are reasons to panic.

First, NIO dropped below our target at $ 42.51 (red line), and it hit the next support level at the $ 38.33 (purple line), and now it is reacting. The fact that it quickly filled the gap today, and it closed above the previous support at the red line is a very good sign. It shows strength. If you missed my previous NIO analysis, the link to it is below, as usual.

These support levels are clearly buy zones, and the sell-off couldn’t sustain for too long. Since the trend is slightly bearish in the hourly chart, the zone of the pink line and the 21 ema are supposed to work as resistances next.

Now, let’s look at the daily chart:


All the lines present in this chart are support levels, which are all buy zones. When NIO loses one support level, it’ll seek the next one to attract new investors. This is how the market works, at least most of the time.

Nio just hit a support level at the green line and it is doing a great candlestick pattern today. The volume is looking good, and if it closes above the 21 ema it’ll be even better. We may have a classic candlestick pattern called Piercing Line, which is usually a very good sign. But NIO must close this way.

Since we are in a support level, the situation favors the bulls, as when you buy near a support level the Risk/Reward ratio is usually very good. Also, since the trend is bullish, the odds favor the bulls too, and pullbacks are just opportunities to buy.

Let’s see how NIO will close today, and if you liked this analysis, remember to follow me to keep in touch with my daily updates, and please support this idea if you liked it!

Thank you very much!