NIO Buy Setup

NIO Signal

• Entry - $10
  
• Target - $27
  
• Invalidation - $2
  
• Risk to reward ratio - 2.13
  

Technical confirmations

• Gap between $9 and $11 where unfilled orders have to filled.
  
• Price once rejected $10 level and then broke it. We think that $10 level could act as a potential support.
  
• We have a 0.886 Fib retracement level at $9
  

Fundamental confirmations
Why should price reach Entry level?

• Because of the lockdown in Shanghai businesses are getting logistics problems.
  
• COVID-19 lockdown and China political situation with Russia influence foreign investors to sell their stocks.
  
• NIO is in the list of Chinese YTD share performance sectors that are vulnerable to COVID lockdowns
  

Why should price reach Target level?

• Debt to equity ratio: <1 (Stable company)
  
• Has a stable cashflow
  
• According to Nasdaq, CNBC long-term price goal - $33