NIO consolidating sideways at bottom of channel


February 2021


Alex Cole

Nio stock is experiencing a sideways consolidation as price swings between highs of $65 and lows of $55.

Once again, price is nearing the lower bound of this rectangle.  As it falls, the GoNoGo Trend is painting the paler aqua bars showing weakness.  We will need to see if price starts to find support at this level in order to rally back to the top of the channel and ultimately mount an attack on overhead resistance. 

The GoNoGo Oscillator has been roughly riding the zero line during this sideways move on low volume (as evidenced by the paler blue color of the oscillator line), normal during a correction.

It would be positive to see the GoNoGo Oscillator rally into positive territory especially on heavier volume.  This would see price move back to the top of the channel, where next we would look for a breakout.