NIO Stock Analysis: A New Bullish Cycle Unveiled

NIO, the prominent Chinese electric vehicle company, presents an exciting technical picture. After bottoming at $3.63, the stock rallied to $7.70 in a five-wave impulsive pattern. This rise spanned thirty-six bars (fifty-three days), gaining $4.07. Following this, a wave two correction brought the price down to $4.31 over thirty-seven bars (fifty-one days), shedding $3.39. The time-price symmetry between these phases strongly suggests a one-to-one market cycle, signalling the potential start of a bullish phase.

GANN Analysis:

From a GANN perspective, the upward move of $4.07, followed by a $3.39 drop, leaves a difference of $0.68. The square root of this figure, 8.25, aligns with significant GANN angles and Fibonacci principles, strengthening the bullish outlook. These technical confluences indicate that NIO may be gearing up for a new cycle, poised to break resistance levels and target higher price milestones.

Critical Invalidation Level:

It is crucial to note that retesting the $3.63 bottom would invalidate the bullish scenario. As such, this level should act as a stop-loss for the current outlook, ensuring disciplined risk management.

Stay tuned as NIO’s chart continues to evolve, potentially marking the beginning of a transformative new chapter.