$NIO TOP 20 UPDATE

-20% drop followed by a 11% jump is less than ideal when it comes to the start of an impulse wave, these are large swings here and I believe this is still a battle between bulls and bears. $NIO is reacting to positive news being dropped now and an increased in registration numbers appeared to help the climb today.

Since the share price managed to stay above $8 on the pull back, the green impulse wave is still valid and I have left the Wave 5 target in place at $10.74....and then I expect the ABC corrective wave, I do not believe we have experienced this yet. When this ABC corrective wave completes, we are still looking at the 0.618 Fib at $8.44. This is the only area I will be buying $NIO if this completes Wave 5 at $10.74.

The second scenario is the red corrective 5 wave down count, a rejection at the 0.618 Fib at $9.46 could see this start coming down in 5 waves and entering Subwave 3. Again going below $8 would invalidate the impulse wave and I think losing the 200 Day MA at $8.22 would cause this to come down further too to our buy zone.

There are a lot of lower risks stocks at the moment that are performing a lot stronger than $NIO with no wild swings so I am in no rush to chase $NIO, I will not entertain adding $NIO at all until the Wave 2 corrective ABC wave is complete at $8.44 if we are in Subwave 5 right now, the risks of this going lower are still here and if production numbers are weak again on Saturday, this could bring $NIO down again on Monday.

This price action is not clear and final waves are particularly complex, as our Wave 1's, so let's play it smart and buy when the risk is reduced.

Plan: 

- If this is an impulse wave and this goes to Wave 5 next, we add then on the pullback at $8.44 at Wave C completing.

- If this rejects again shortly, we wait for the buy zone to enter again before adding.