Trade of the Day

NIO Inc. (NYSE: NIO)

(Current Price: US$11.00) – TECHNICAL BUY

Buy price: US$11.00     Stop loss: US$9.50   

Take profit 1: US$14.00    Take profit 2: US$15.30

The price has pulled back from the downtrend channel resistance and found support upon the confluence of retests at a downtrend resistance line breakout and the US$10.60 level, which was a prior horizontal resistance level.

Should the price rebound, it could retest the first resistance level at US$14.00, which is confluent with a retest of a horizontal support level breakdown in August as well as a previous swing high horizontal resistance level formed in December last year. It could then head to the next resistance level at US$15.30, a possible retest of the downtrend channel resistance.

Expected timeline of the trade is 4-12 weeks from the date of report issuance.