An Important Bullish Pattern Forms on the NIO Share Price Chart
Today, the share price of NIO Inc. (NIO), a Chinese manufacturer of "smart" electric vehicles, is trading above $4 a development that may be viewed as an optimistic scenario following the drop to $3 in the first half of April, marking the lowest level in nearly five years.
Why Has NIOs Share Price Risen?
Bullish sentiment has been supported by news that the company: increased vehicle deliveries by 40.1% compared to the same period last year; is launching its premium ET9 model, expanding its range of offerings.
Additionally, news offering hope that high tariffs in international trade may not hinder the company's growth has also had a positive impact on NIOs share price.
Technical Analysis of NIOs Share Price Chart
From the perspective of candlestick analysis on the daily chart, a "Three White Soldiers" pattern (marked with an arrow) can be observed. This is considered an important bullish signal, as according to Thomas Bulkowski, author of Encyclopedia of Candlestick Charts, following the formation of a "Three White Soldiers" pattern, a bearish trend (highlighted by the red channel) reverses to the upside in 82% of cases.
However, it is important to bear in mind that resistance may be encountered at:
the $4 per share level, as it previously served as a support;
the 50% Fibonacci retracement level from the downward move between 12 March and 8 April.
Read more: https://fxopen.com/blog/en/oa-an-important-bullish-pattern-forms-on-the-nio-share-price-chart/
Text source: Forex Trading Blog
