Tesla is likely moving on continued momentum after releasing earnings Monday. Nio is likely moving after several Chinese companies are rebounding from weakness caused by regulatory concerns regarding education and technology companies.
See Also: Ominous Death Cross Forms On Tesla‘s Chart
Tesla Daily Chart Analysis
- Shares are forming into what technical traders would call a pennant pattern and are close to breaking out of the pattern. A breakout could happen anytime with above-average volume.
- The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock is likely facing a period of consolidation.
- The 50-day moving average may hold as an area of support while the 200-day moving average may act as a place of resistance.
Key Tesla Levels To Watch
- The pennant pattern began forming in late 2020, and looks like it could be ready to break out in the coming days.
- The price has gotten condensed tighter and tighter and now doesn’t have many places to go. The stock will probably see a breakout soon but it’s unknown whether the break will be of support or resistance.
- The stock could see a golden cross. The golden cross is when the 50-day moving average crosses above the 200-day moving average. Sometimes this cross can bring a solid bullish move.
Nio Daily Chart Analysis
- Nio looks to be trading in a pennant pattern as well similar to the chart on Tesla, although this pattern is in earlier stages than Tesla‘s.
- The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue). This indicates sentiment in the stock is likely bearish.
- The stock may find resistance near each of these moving averages in the future.
Key Nio Levels To Watch
- Nio looks to have just had a support bounce within the pennant pattern and is seeing a push higher Wednesday.
- The stock would need to cross pattern resistance with above-average volume to see a bullish breakout. A bearish breakout is also possible with a break below pattern support on high volume.
- The Relative Strength Index (RSI) sits at 42 and has been moving down throughout the past couple of weeks, showing more sellers have been moving into the stock. The RSI may have seen a bounce as the price saw a bounce off support.
Both stocks are looking bullish trading in the pennant patterns and either or both could see a breakout soon. Both of these stocks are trading in the EV market and may follow the rest of this market as it moves.
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