NIO lost the 46.26 as we expected it would yesterday, as I said in our analysis, with the confirmation of the divergence on the RSI. It also lost the 20ma and it dropped a lot today, more than 3%. This was not surprising at all for us, and I think we will have a trade here soon.
By losing the 45, NIO will do a pullback to the 43.50 at least, as the 4h chart suggests.
The 43.50 is around the 20ma, and we have a bearish divergence on the RSI in the 4h chart too. This increases the chances of a pullback, and I believe it can go even lower than the 43.50, if you look at the daily chart.
NIO just hit a resistance, and the RSI is higher than ever, similar to the time it was around the 65. Movement like this attract short sellers that are just going to short NIO, set a stop-loss at todayโs high and a target at the 20ma. If it drops, great. If it goes up, ok, at least the stop was very tight.
So, we gotta be careful, and focus on our plans. If you ask me, this is a short trade, but I wonโt do it for several reasons, mainly because there is better stuff around to trade.
If you liked this trading idea, remember to click on the โFollowโ button to get more trading ideas like this, and if you agree with me, click on the โAgreeโ button ๐.
See you soon,
Melissa
By losing the 45, NIO will do a pullback to the 43.50 at least, as the 4h chart suggests.
The 43.50 is around the 20ma, and we have a bearish divergence on the RSI in the 4h chart too. This increases the chances of a pullback, and I believe it can go even lower than the 43.50, if you look at the daily chart.
NIO just hit a resistance, and the RSI is higher than ever, similar to the time it was around the 65. Movement like this attract short sellers that are just going to short NIO, set a stop-loss at todayโs high and a target at the 20ma. If it drops, great. If it goes up, ok, at least the stop was very tight.
So, we gotta be careful, and focus on our plans. If you ask me, this is a short trade, but I wonโt do it for several reasons, mainly because there is better stuff around to trade.
If you liked this trading idea, remember to click on the โFollowโ button to get more trading ideas like this, and if you agree with me, click on the โAgreeโ button ๐.
See you soon,
Melissa
