Nio Inc. (NIO) Hit The Blue Box And Rally As Expected

Nio Inc. (NIO) is a Chinese multinational automobile manufacturer headquartered in Shanghai, specializing in designing and developing electric vehicles. The company develops battery-swapping stations for its vehicles, as an alternative to conventional charging stations. The company has raised over $5 billions from investors. In 2021, it plans to expand to 25 different countries and regions by 2025.

NIO Daily Chart February 2023

January 2023 volatility broke the wave ((4)) high at 14.03, but the movement was immediately rejected by the market. This suggested that this breakout is still part of wave ((4)) ending at 14.36. We expected the stock to continue its bearish movement and break wave ((3)) low at 8.28. Once the market breaks this level it will give us a buy signal. We believed that the ideal area to buy was in 7.05 – 4.80 zone, which it was where the wave ((II)) should end and continuing the uptrend.

NIO Daily Chart June 2023

NIO has been falling since early days of 2021 and looks like the correction as wave ((II)) ended at 7.00. The current chart shows that the breakout to 14.36 as wave ((4)) was false; therefore, wave ((4)) ended at 14.03 high. Down from wave ((4)), NIO built an ending diagonal. Wave (1) ended at 9.50 and bounce in a double correction finishing wave ((2)) at 13.22. Market continued lower ending wave ((3)) at 8.03 and a zig zag bounce ended as wave ((4)) at 10.75. The ending diagonal structure needed one more low to complete the minimum swings to be finished. The price action drops reaching the blue box (7.05 – 4.80) at 7.00 and rally, given the idea that a big cycle as wave ((II)) has ended and it should continue higher as price stays above 7.00.

Source: https://elliottwave-forecast.com/stock-market/nio-inc-nio-hit-blue-box-rally-expected/