$NIO TOP 20 UPDATE

I have spent some time during the night going through this chart. What is throwing a lot of people off is the price action since Friday, where it bounced aggressively after the negative earnings report and then declined to end red for the day. This then followed by an aggressive bounce again yesterday after Li cut prices on all models, followed by positive news from Chinese policy makers too.

So on the 1hr chart, we have these large swings from Friday, this can be seen in two ways, that there are plenty of buyers ready to step in but also that these buyers are easily to catch out and it continues to do what it has been doing all year so far, catch out buyers by dumping straight after large climbs....insurance numbers were released today and they are worse than last month too, this may bring this down again.

So what are we looking for here now?

For me the important level to watch is the 0.887 Fib at $8.80. This has been an important line since November, initially offering support until April and has since flipped to a resistance line since then, rejecting twice, possibly 3 times already.

We have not made a higher high yet either, the PM today has come close and Chinese stocks are performing well in the PM too.

What I am trying to find is a potential impulse wave in my subwave 2 that I have drawn, to challenge my thought process, to see if I am missing something. So far it is a clear corrective wave, there is 3 clear waves.....IF this can break to a new high above the 0.887 Fib, I will see if this has formed a leading edge impulse wave where waves overlap each other, even with that, this is a big stretch to try and find an impulse wave here.

I am watching how this has broken out of the yellow wedge here and this is above the 200 and 50 Day MA on the 1hr chart, so I am seeing some bullish indications but we know that buyers have been stepping in at times but we are also seeing that they repeatedly get caught out by pump and dump cycles.

We have entered the buy zone three times now, I have added but we all want this to come down to buy more or start a position....if you haven't started a position yet, I really do not know what to say to you, I am sure you have your reasons.

For now tho, the count remains the same unless this can stay above the 0.887 Fib at $8.80.