Hello traders and investors! We have a Red Monday today! Let’s see how NIO is doing right now.
We have a correction in the hourly chart, and it seems the support area around the pink line ($ 49.31) did hold the price very well today. Now NIO is doing another Hammer candlestick pattern in a support level, and this usually attracts buyers.
It must not lose the support area, because the market may see this Hammer as a bull trap, and NIO could easily drop to the $ 42.51 again if this happens. As long as NIO keeps above the support area, the trend will remain bullish.
We have what seems to be a Descending Triangle chart pattern as well, and usually this is a continuation pattern, meaning that the odds favor the bulls.
Now let’s look at the daily chart:
The Triangle pattern seen in the hourly chart turns out to be a correction in the daily chart. The volume decreased in the past few days, maybe because of the Holiday in the U.S., and it seems the 21 ema is trying to reach the price. This is what we call a Time Correction.
Also, this indicates that the bull trend isn’t in danger. There are still no clear reversal patterns around here, but we must keep our eyes open at the $ 49.31. And if you liked this analysis, please, support it! And follow me to keep in touch with my daily updates.
Thank you very much.
We have a correction in the hourly chart, and it seems the support area around the pink line ($ 49.31) did hold the price very well today. Now NIO is doing another Hammer candlestick pattern in a support level, and this usually attracts buyers.
It must not lose the support area, because the market may see this Hammer as a bull trap, and NIO could easily drop to the $ 42.51 again if this happens. As long as NIO keeps above the support area, the trend will remain bullish.
We have what seems to be a Descending Triangle chart pattern as well, and usually this is a continuation pattern, meaning that the odds favor the bulls.
Now let’s look at the daily chart:
The Triangle pattern seen in the hourly chart turns out to be a correction in the daily chart. The volume decreased in the past few days, maybe because of the Holiday in the U.S., and it seems the 21 ema is trying to reach the price. This is what we call a Time Correction.
Also, this indicates that the bull trend isn’t in danger. There are still no clear reversal patterns around here, but we must keep our eyes open at the $ 49.31. And if you liked this analysis, please, support it! And follow me to keep in touch with my daily updates.
Thank you very much.
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