The Long Investor

$NIO TOP 20 UPDATE

Added 2023-06-06 20:47:01 +0000 UTC

$NIO had a volatile day, going as low as $7.30, bordering on turning very red but bounced just below the blue line in the buy zone and came all the way back up to just below the previous high, the 200 Day MA is still above on the 1HR chart, which is at the previous highs resistance at $7.92.

The only concern I have with this bounce is that it is part of a larger Subwave 2, it means that $NIO is taking its time moving down to our ideal buy price in the buy zone.

I do not think this move is an impulse wave and this is down to the price action I've marked with the white oval, this is a very clear 3 wave count, if there were 5 waves, then we would have to consider that the bottom might be in, but because there is only 3 waves, this can not be the start of an impulse wave.

So two possibilities here:

1.)

It rejects at the opening tomorrow or at the 200 Day MA at $7.92 and it starts moving down for Subwave 3, another rejection at $7.92 and this should come down hard as this is a firm resistance line.

2.)

It is a larger Subwave 2 and it bounces up to between $8.20 - $8.30 and then rejects.

Let's not be too surprised about how this is behaving, we have made it clear that the buy zone is under $7.38 and the moment it goes into the buy zone, buyers are stepping in....that being said, it is still coming down again.