Relevant levels on NIO + Explanation.

Today, we will look at the relevant levels of NIO and what we can expect from them.

The first thing is defining the current context:

a) The price is making a corrective formation (defined by the support zone and the descending trendline)
b) The current drawdown is 59%
c) The current duration of the drawdown is 365 days.

From where we are right now. Which are the next relevant levels for bullish and bearish scenarios?

Bearish Scenario: Currently, the price is below the support zone. IF we don't observe bullish movements above 32 / 33 in the short term, the price may drop towards the next support/resistance zone at 14.00, which means an 80% drawdown.

Bullish Scenario: Assuming the price is able to move above 32 / 33, we may observe a reaction on the descending trendline. That would be a short-term bullish target. However, observing a breakout of the descending trendline could be a positive sign for position traders. It's important to say that when we have the breakout of structures of this size, it is normal to observe some corrections/throwbacks before new massive movements start.

Thanks for reading! Feel free to share your view in the comments.