The Long Investor

$NIO TOP 20 UPDATE

Added 2023-05-25 17:28:01 +0000 UTC

We were just $0.13c away from hitting our buy zone today, what a rollercoaster week for $NIO.

There is no doubt that a new low is coming in shortly, a relief bounce is needed here and I can see a head and shoulders potentially forming here too, with the right shoulder still left to form, this happened in March/April too, where I have set the first white oval marker, so let's not be too surprised if we see the same thing happen again. This is only a possibility, it could sink and capitulate at any stage right now as it is looking very weak.

I will be certainly buying the moment we enter the buy zone again with my first position. Like I said before but for the benefit of our new joiners, I split my allocation for a stock I wish to buy into number of parts....when the price enters the buy zone, I allocate 20% of my total equity (for this stock) as my first position, if it goes lower, I'll add again 25%, i'll asses the support again, possibly wait for confirmation of support and when it comes, add 25% again and when I see Wave 1 complete on the impulse wave, I'll look to add the reamaining 30% at Wave 2.

I hope this helps, it is just a structure that I use, feel free to use different variants that work for you, but the objective is to manage your average in the buy zone....not to wait for the absolute bottom (because it is incredibly difficult to confirm and try and maintain an average that is in the middle of the buy zone, so in this case, around $6.