Hello Traders,
NIO, the Chinese electric carmaker, has made a high @ USD 66.99 on the week on January 11 in 2021!
Since then, the stock is in a corrective mode, what can be a wave 4 of major degree.
In detail.
In could be, that the high was a wave 3 top, with a wave 4 to follow, developing in the waves a-b-c. This wave could be done at USD 30.71 on May 21!
The „problem is, that this correction was shorter than the 0.382 Fibonacci of waves 2 to 3, what is the most retracement for this wave of all degrees.
So the alternate suggest, that this low could be just a wave a of 4! If this is the case, the target for a wave c of 4 is at or around the USD 16 level; so the stock could be cut in half before done to the downside!
To play the idea of a wave 4 that is done, and a wave 5 to follow, the stock just need to stay above the possible wave 4 low at USD 30.71. Any decline below this level opens the door to the alternate view.
It is possible to count the move since the $30.71 as an impulse, that has developed as waves 1-2-3-4-5 of 1 of 5!
If so, not one more low is needed to push NIO into wave 3 of 5, while at $36.24 a wave 2 was done!
So, the levels are set!
Let's look how NIO will play out this count idea!
Have a great week1
Trading this analysis is at your own risk!
Feel free to ask anytime!
NIO, the Chinese electric carmaker, has made a high @ USD 66.99 on the week on January 11 in 2021!
Since then, the stock is in a corrective mode, what can be a wave 4 of major degree.
In detail.
In could be, that the high was a wave 3 top, with a wave 4 to follow, developing in the waves a-b-c. This wave could be done at USD 30.71 on May 21!
The „problem is, that this correction was shorter than the 0.382 Fibonacci of waves 2 to 3, what is the most retracement for this wave of all degrees.
So the alternate suggest, that this low could be just a wave a of 4! If this is the case, the target for a wave c of 4 is at or around the USD 16 level; so the stock could be cut in half before done to the downside!
To play the idea of a wave 4 that is done, and a wave 5 to follow, the stock just need to stay above the possible wave 4 low at USD 30.71. Any decline below this level opens the door to the alternate view.
It is possible to count the move since the $30.71 as an impulse, that has developed as waves 1-2-3-4-5 of 1 of 5!
If so, not one more low is needed to push NIO into wave 3 of 5, while at $36.24 a wave 2 was done!
So, the levels are set!
Let's look how NIO will play out this count idea!
Have a great week1
Trading this analysis is at your own risk!
Feel free to ask anytime!