Enter the matrix, this NIO shouldn’t be the “one”.
NIO had its enjoyable transferring upwards. The Uptrend began Jun.’20 at round 4.00 and continued transferring upwards reaching 55.00 by Nov.’20 all whereas respecting the 50ema.
By Dec.’20, worth made a sharp drop and fell to 39. It was caught by 50ema the place it rebounded, and worth broke out and moved above 55 to all time highs.
Unfortunately, worth was unable to carry the breakout and on Feb’21, it fell again under 55 and closed under the 50ema. This deemed the breakout transfer a “false breakout” and shut under 50ema signaled the doable finish of the uptrend.
After closing under 50ema, worth fell to 34 the place it discovered assist. It bounced again above 50ema and retested 55 however didn’t make a better excessive. Price was shot again all the way down to assist at 34.
Price has formally misplaced the uptrend and has entered a sideways market between 34-55.
After touchdown at assist space of 34, worth makes a transfer upwards however fails and now makes decrease excessive. We now see purchaser weak point with decrease highs into assist space at 34.
Dec.’21, worth breaks down from assist at 34 and sideways vary can now be labeled a Distribution stage.
Price now seems to be to start out Downtrend.
We additionally see a Death cross with 50ema crossing underneath 200ema. This indicators the bearish circumstances out there
Jan.’22 worth enters downtrend and strikes from 34 to 13 all whereas respecting the 50ema.
We then have a pullback to the 50ema which is performing as Dynamic resistance.
To associate with this pullback, we’ve an overbought Stochastic sign. This was cue to enter commerce brief.
After that brief entry, worth proceeds to maneuver all the way down to 11.72.
It has since pulled again to Dynamic Resistance and its at the moment the place we discover ourselves.
We even have an overbought Stochastic sign. This is my cue to enter commerce brief
Confirmed Downtrend + Pullback to resistance + Overbought stochastic = Short entry
Entering commerce brief
Entry: 19.18
Stop Loss: 22.78
Target: 11.78, +39.06%, 2.19 RR ratio
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