Nio - Watch out for the break out of the channel

Hello everyone,

China said Wednesday that it would keep its stock markets stable and take measures to boost economic growth in the first quarter, according to the state-run Xinhua News Agency.

The government should roll out policies favorable to capital markets while being cautious in introducing contractionary measures, according to the Financial Stability and Development Committee under the State Council, during a meeting chaired by Vice Premier Liu He.

This is huge, because the reason why Chinese stocks were down so much was due to delisting fears, unstable political environment and the recession looming over us.

While the recession and the war between Ukraine and Russia is not going anywhere as of yet, the improvement in the policies of China and significantly reducing the fear of delisting is something that will have an affect on all the beat-up Chinese equities, at least in the short-term.

Nio is trading inside a decending channel and we need to watch out for a break and possible retest of the last resistance.

In case it does not break though, we are headed down to the 10$ mark.

Good luck!