$NIO Cautiously bullish, will it rip?

Hello everyone, NIO has broken out of its short-term downtrend line on June 1st with good sales and China news. This breakout is impulsive and accompanied by volume which is usually a bullish signal. However, selling pressure remains strong on the hyper-growth stock.

I am expecting a test of 43-44.5 resistance in the short term if the resistance is broken through a 49 test would be imminent.

Pros:
- Short-term resistance is broken through, with so far a successful backtest
- The break is impulsive with high volume suggests that institutional money is buying in.
- Lot of upside potential when hyper-growth stocks come back in favor.

Cons:
- RSI bearish divergence
- Right now very close to resistance 43 -44.5

Conclusion:
- If you're already holding NIO from the bottom, congrats and observer price action at 43-44.5 resistance.
- If you are not yet holding NIO know that your R/R is at 43-44.5 and a drop below the short-term trendline would be your SL.

註釋

June 2nd:

Today's price action seems very much like a backtest of the broken trendline. Falling price with low volume suggests the upward momentum is still in play. If we turn around and start heading higher on Friday, 49 is very much in sight.