Watch out for this pattern on Nio - Keeping my eyes on this.

Nio is potentially forming a descending triangle

If prices actually move back to touch 39.50 again, this creates the descending triangle at play. a 4th Touch drastically increases the probability of a downwards break.

A break below the support $39.50 is a disasterous scenario for Nio - I am not predicting this would happen, rather preparing and reacting IF it happens.

a Break below, The descending triangle targets the $22 level - Which rather interestingly is the 0.236 Fibonacci level

Depending on how low the drop takes it can also potentially coincide with the red 200 daily SMA - added confluence of support.

Personally I had stopped my shorts as per previous posts, added long after, and now taken full profits as I'm scared of this potential triangle.

My prediction (predictions are worthless) timewise is a break down around Early Feb 2021.