The Long Investor

$NIO TOP 20

Added 2024-01-16 20:53:43 +0000 UTC

Tough day for $NIO and tough day for the EV sector.

So we need to try and identify where the bleeding will stop, until this happens we can not count the next phase and we can not assume that another impulse wave can be started here, losing $7 invalidated the Impulse Wave we had.

Wave 1 of any impulse wave is difficult and is only confirmed when a higher support is found and $NIO has not given us this over the last year, we wanted to see a higher low in August and it never came and we wanted a higher low at the start of Jan '24 and it never came either.

The Impulse wave can only be confirmed when Wave 2 is complete and we start Wave 3.

We are now in the buy zone again and we need to play the cards we are dealt with now.

I have added today because we are sitting in the middle of the Buy zone, an area I expected us to be in June but instead we got a massive rally, I intended to buy in the $6's in June but I never got a chance.....so I am taking that opportunity now.

No specific information has came out about $NIO over the last 2 weeks, which tells me its the weakness in the sector and not on a particular company, $XPEV and $LI are also feeling the pressure too.

So whats next?

$NIO is in a larger descending wedge (in yellow) and now inside a smaller descending wedge (in red).....believe it or not, these are bullish formations, although it doesn't feel like it now.

But they need to breakout of their wedges to materialise.

We are approaching the bottom of the red wedge now $6.35, a failure to hold this level and $NIO will go below $6 and test the lower yellow trend line.....needless to say, this level will need to be held.