The Long Investor

$NIO TOP 20 UPDATE

Added 2023-07-24 22:16:42 +0000 UTC

To say my chart from earlier today went to plan is an understatement.

And the big lesson to take from this is that when the 200 Day MA is held from above and tested a number of times, in $NIO's case, it was tested 3 times, it is a firm confirmation that this is a support level. This happened over a number of days, so it did not matter that it held by the end of close on the first day, it continued to hold, over a number of days....so when we say that a price needs to hold above a certain level, it has nothing to do with time or how the price closes on the day or even the week, its about hitting that support level a number of times that truly confirms a support level.

This is a really big lesson and it is the most common question I get which really surprised me but I am glad we have identified it and today was a perfect example of it.

This is why we never limit ourselves by time.

This is also why many people get caught out on fake break outs, they think that as soon as a price breaks above a level, it's buy time, its not.

When we see a test or a number of tests of support, then it's buy time.

We saw this with $ABNB, $AMZN, $DAL etc.

So back to the chart, it is now following our chart very nicely here, do not be surprised to see a flat or even red day tomorrow after such a powerful move today, the big message is that this is in an uptrend now.

Any retests and holds above the bull flag is an opportunity now to buy but it doesn't need to come back to this level to continue higher from here.