NIO Inc. Elliott Wave Analysis ( 21-05-22 )

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NIO Inc. Elliott Wave Analysis


Here is our blog’s NIO Inc. Elliott Wave Analysis for the 21st May 2022.



Fundamental Observation :

  • Long term view of EV sector still promising as most countries are increasing their efforts to reduce carbon footprint.
  • NIO taking pro-active steps to reduce possible US intervention on delisting Chinese ADR with secondary listing in HK & SG.
  • Short term view still relatively weak as market sentiments are volatile.
  • Global supply shortages, inflation and geo-political risks are still weighing high on investor’s minds.


Elliott Wave Observation :

  • Midst of a deep Wave 2 corrective structure in White in the larger degree.
  • Viewing it as a 5-3-5 (A)(B)(C) Zig Zag in Cyan.
  • Likely to have an extended Wave (C) in Cyan with a Fibo Extension up to the 161.8%.
  • 1st Fibo Confluence Zone forming at the Fibo Ret 78.6% & the Fibo Ext 138.2% with a possibility of a Harmonic Gartley Pattern.
  • 2nd Fibo Confluence Zone forming at the Fibo Ret 88.6% & the Fibo Ext 161.8% with a possibility of a Harmonic Bat Pattern.
  • Currently viewing Wave [4] in Green as an {a}{b}{c} in orange to complete at the upper boundary of the down sloping channel.
  • Current price rally in the lower degree not so convincing as it does not seem to be backed up by strong volume.
  • High probability that Green Wave [5] completing the larger degree White Wave 2 will conclude somewhere in the Green Dotted Accumulation Box.


My Trade Plan :

  • Since our last NIO Inc. Elliott Wave Analysis, Nio’s stock price has corrected extensively more than 70% since its ATH at $61.95.
  • The $10 mark is a huge large number psychological level where previous market “Gaps” will eventually be filled.
  • Current phase could possibly be the “Accumulation” phase for the next market cycle up from a Wyckoff perspective.
  • If the proposed Green Wave [5] does make a last bid attempt to break below the last market structure low at $11.64, it would probably wipe out the SL of most short term reversal traders and long term “Weaker” hands.
  • A potential “Break & Retrace” by the BB would be also be in line with Wyckoff’s Spring Break and Test reversal in the Accumulation phase.
  • Approaching this as a long term positional play with upside bias back to at least its previous high.
  • Start dollar cost average accumulation in tranches in the Green Dotted Box up to a maximum of 5% of long term portfolio.
  • Not expecting NIO to fall below SL region of $5.50 unless something happens drastically with the fundamentals of the company.

Kindly note that this is not financial advice, just my humble opinion and trade plan.


Please DYODD ( Do Your Own Due Diligence ) before taking any trades.



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