The Long Investor

$NIO TOP 20

Added 2023-08-24 12:29:29 +0000 UTC

A clear flattening out now, compared to the downward trend, where it was constantly bouncing and then would fall lower. So far, it has bounced 3 times now on the important 0.618 Fib at $10.50, with the third time hitting $10.50 exactly and bouncing....positive movement again in the PM too.

The market has certainly reacted positively to the $NVDA report, all eyes are on the opening now to see if this is continued.

For $NIO, the first obstacle is the 50 Day MA at $11.20, a break through this level and holding above means that we are seeing more positive signs of reversing. The next test will be the 200 Day MA at $12.50.

I must mention again that this could very well be Wave B and the long pull back was Wave A, meaning small wave 5 is already complete and in now. If this is the case, we should see a bounce to around $13 before going lower again to complete Wave C....possibly down to the yellow trend line again at $9.80.

If this does happen, it means that this is Large Wave 2 completing and we have Large Wave 3 next.

Few people were confused when I mentioned this before, so I must advise you to refer to the Elliott Wave Theory Made Simple book again, to understand how impulse waves move.

The good news is, if this is Large Wave 2 we are in now, it means that we can get this out of the way sooner and have Large Wave 3 next until the end of the year possibly to $30.

Otherwise, the count as shown finishes at Wave 5 at around $18....we will then get our ABC correction for Large Wave 2, which will bring this back down to $11 either way.