NIO has formed a classic descending triangle pattern, which has bearish implications.
Chart patterns are illustrations of the supply and demand dynamics occurring within a market. This pattern shows buyers of NIO have been complacent. At the same time, sellers are becoming more aggressive.
Since early March buyers have held firm at the $35 level. At the same time, sellers have been knocking the shares lower.
In mid-March, the lowest price sellers would accept for their shares was around $45. By early April it had dropped to $40. Now there are sellers willing to accept $35.
The combination of aggressive sellers and complacent buyers could drive the price lower.
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