A friend Asked About NIO

2021年5月20日

I looked at NIO and it has fallen from a high near $70:

Price has “pulled back” (meaning, dropped after rising) for the fourth time since Mar!    When we see a level get tested over and over and it finally BREAKS lower (and breaks that price level) it can be considered a LONG trade that could fail spectacularly.

We saw some technical Consolidation action and now I am seeing a series of short Measured Moves play out.
 
We have seen price move UP into nearly $70 only to be sold off.   This means that he pro’s took profits up there and COULD re-purchase shares DOWN HERE AT around $30 to $34, but we never know unless we wait and ALSO see those pro’s jump back in and TRULY SUPPORT NIO with volume purchases.
 
I continue to see selling however.  We shall see.  I hope that this helps show you how a “technical” analysis can help a trader make better and more informed decisions on stock investments that prevent entering trades, such as our NIO instrument, when price action advises us to not take that risk.

Best,