$NIO TOP 20 UPDATE

Yesterday's chart we said that $8.80 is the area we are watching, to hold there and it just about held there after battling all day between a very tight line, between the 1.618 Fib at $8.92 and the historical 0.887 Fib at $8.80.

We can see that the previous resistance line was at $8.86 on the 22nd of May, so we know that this level is important.

I have watched every single movement in this bounce from $7 to see what this is and the only explanation so far is that it is a triple three.....and not only that, it is a perfect triple 3. Which means it is a WXYXZ wave, with 3 waves (ABC) in each count and is only found in Subwave 4 or Wave 4.

This is not an impulse wave and let's be very clear here, this is a very complex structure, I have consulted another EW theory expert and we have both come to the same conclusion independently.

We speak about waiting for the set up and we buy when we are happy that the confirmation is there, so when we buy, there is full conviction, right now, the set up is not clearly there.

If you are holding this for 3-5 years, none of this matters, especially if you have started a position already in the buy zone.

A very important point to make here, IF this is the start of an impulse wave and this is subwave 1, we will be expecting subwave 2 next. Subwave 2 will give the confirmation of the set up, this is the sensible area to buy.

So what do we do today?

I think $9.29 is possible today. And I can be very honest, if the bulls and institutions step in today and decide, they are happy to load in, as Baillie and Gifford did at $13, they are happy that the risk to reward is to the upside and have no problem starting their position now because the upside potential is there, then so be it.

The buy zone is there for a reason, we have a strategy. If we bought 100% of our $NIO allocation at $7.38 and it dropped to $5 and you were down 30-40%, would that be more annoying than just waiting for confirmation and adding at $9.50? when we have the 3-5 year projection going to $140+.

Let's be sensible here, we all want to buy lower to get maximum value, if this rejects at $9.29 and it comes back down to the follow the count as shown, we'll be happy and have forgotten about this chart within a few days.

If it manages to stay above $8.80 - $8.92, then we allocate another 20% - 30% to $NIO. Then I will be adding 30% when Subwave 2 completes.....which was my original plan, to allocate when Subwave 2 completes....regardless of what the price is.

Do not let $NIO consume you, I am seeing so much chat about $NIO in the group while many other charts are a lot clearer with the same upside potential, if you are getting stressed and a number of people are, you need to assess whether this is worth it for you, this is a big test of your investing capability.

That all said, everyone will gain from this whole experience, you will have learnt a lot about EW Theory, your tolerance for risk and capital allocation.