Nio Stock is in the Clouds….Use Caution at this Altitude

Nio Stock has been on a tear lately so it is definitely worth taking a look at it on this blog.  It’s even better that I produced a video on it breaking down all of the technicals on the chart.  The way I do technical analysis is easy and simple and really that is all you need to read charts.  All the fancy indicators and bells and whistles are not better than simple trade lines, volume and price action.  With that being said, it’s the price action that has me worried about Nio stock.

The price action on the stock is actually great, but a little to great.  I feel that there is no reason that Nio stock can’t continue higher but that’s not a sign to jump all in.  Nio stock has been on such a tear, I feel it’s time to take profits or if your looking to get in at this point, wait until we get a pullback.

Since the release of this video, the stock has already seen a 7 percent pullback, and when looking at the history of this stock, 20 percent pullbacks are the norm.  I break down everything that I am talking about on this post in the video, I give you the visuals of the pull backs and the concerns that I have with Nio stock going straight up on the monthly chart.  You see, stocks that go straight up don’t always continue that way.  It usually ends ugly or we can hope for the bright side and that’s for the stock to go sideways.  If the stock goes sideways without losing price, that action is bullish and can be seen as a possible entry into the stock.

For right now, you can go at it.  There is really nothing wrong with the stock, but please use caution as this stock, Nio Limited; is heading into the clouds.