The Long Investor

$NIO TOP 20 UPDATE

Added 2023-03-20 20:33:46 +0000 UTC

Ok three points to make:

1.) This did break out of the downward channel after testing the lows again, three times it has tested this level and has held. The bounce was parabolic for $NIO so we knew a pull back would come, still finished a respectable 5.5% up for the day.

2.) On the 2hr chart, the 50 Day MA (in blue) has been the resistance line since the breakdown at the start of Feb when it failed to get back into the bear flag and has been downtrending since, I have marked with a white circle, every time the price has hit this trend line and got rejected and today it just finished underneath that 50 Day MA again.

3.) This bounce today and got rejected exactly at the 0.618 Fib, which is what we would see for a bounce for a down ward trend.

So for now, this is likely a bounce before another leg down, this may bounce tomorrow and go all the way up to the $9.50 bear line but we would need to see it reject there then.

If it does not reject there then we will have to consider that the psychological support level of $8 is the bottom....this is not a hard support level (Fib level), a historical support or a gap fill level, so $8 is just a clean number where people believe that it a support level, that's why it is called a psychological level.

For me, I have no problem waiting and would happily buy above $9.50 then buy now and miss a chance to buy lower after waiting this long. Everyone has their own strategy, so go with what you are comfortable with. It is already very low and a good bit lower compared to where people started to buy at $13 thinking the bottom was in in October.