Technical Pulse: NIO Inc October 28, 2020 463

NIO Inc (US: NIO) Strong upside is set to continue after the stock has repeated broken out of the larger pennant and the smaller flag previously. As such, the stock is set to potentially breaking new high based on the technical presented:

  1. All 5 components of the Ichimoku are pointing towards a strong bullish trend.
  2. There is a repeated periods of the Kihon-Suchi number knows as the Taitou-Suchi numbers. If we potentially plot it forward, the result will be that there will be another new high 33 periods later, as indicated by the Senkou-Span A as well.
  3. Chikou-Span imulse upside is strong and the distance away from the current price level is far away to indicate that the upside remain positively strong.
  4. Price action suggest that the bullish flag has been broken up with the morning star formation closing above 38.2% retracement level of the recent swing high and the Tenkan-Sen Hane-point.


*Timeline of the trade is 3 weeks from the date issued.



Ichimoku Kinko Hyo

Red dotted line = 9 Periods Tenkan-Sen

Blue dotted line = 26 periods Kijun-Sen

Purple Line A= 26 periods Senkou Span A

Purple Line B = 52 periods Senkou Span B
plotted 26 periods ahead

Green line = 26 periods Chikou Span. Lagging line

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About the author

Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 11 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory. He believes that history plays an important role in how the market is reflected in the future.

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