The Long Investor

$NIO TOP 20

Added 2023-08-10 10:21:48 +0000 UTC

Two important Fib levels we have been watching were the 1.27 Fib at $14.10 and the 1 Fib at $13.26.

Initially $14.10 was showing early signs of holding but weakness across the market and weak export figures from China brought this down further, very little was green yesterday.

As briefed, our attention then focused on the 1 Fib at $13.26, this level has been holding and performed well after hitting this level yesterday.

Not only is $13.26 the 1 Fib level but it is also the high from Jan, shown on this chart....what is the significance of this?....in Jan, this level acted as a resistance level, yesterday it is now behaving as a support level, although still early to confirm, this is what we want to see, levels flipping from resistance to support in an upward trend, coupled with a bullish confirmation with the 50 Day crossing the 200 Day MA on the daily chart.

$BABAs earnings report is in and it was very good and strong, this could be a positive for Chinese stocks today too, a second test and bounce on this level at $13.26 would be bullish.

I bought at this level yesterday because I am happy that we are in Wave 4 now and I feel at the 1 Fib is a sensible level to add in terms of risk v reward, favouring the reward side.

The 200 Day MA is below at $12.05 on the 1hr. If weakness continues in the market then this is the level I am watching