Here’s your trade on NIO, Inc ($NIO) (February 09, 2021)
DAN OFFERS HIS 30 DAY FREE TRIAL TODAY AND EXPLAINS A BIT ABOUT IT. CLICK HERE TO TAKE ADVANTAGE OF THAT OFFERNIO
Nio ( NYSE: NIO ); this is a trade that is interesting. I put this on today around 60ish I think, I forget the exact price. What I liked about this and what I like about it, even more, is the way this was squeezing, this is in a volatility squeeze. And one thing that I have found throughout the years, I have sometimes learned it the hard way, other times I’ve confirmed it in a real profitable way, when you have got these squeezes that are occurring close to the 50-day moving average, in this type of a situation, they really work out the best.
The real high squeezes, they can work, and when they do work from a high squeeze, it’s a really powerful move. But they are also just kind of more prone to failure just because it occurs too high. But when you have this kind of tightness near the 50-day moving average, that’s a really good setup, particularly when this sideways drift here is occurring on lower volume.
So what that is telling you is, there is not a lot of trading activity and so the stock is kind of a little bit heavy. But it’s not really a demand issue, there is plenty of demand otherwise the stock would be falling, it is just kind of a supply issue. And so when you have got super, super low volume here there is just not a lot going on. And then finally we get a breakout today.
Now, the funny thing is, some of my members, when I said, “Hey, I’m in Nio ( NYSE: NIO ) now.” One person says, “Hey Dan, join the party, great, nice to have you here.” I think some of these guys have been holding it for months, and so sure, I’m late to the party. But my point was this, and this goes with every kind of trade, I said, “The thing is I joined the party but I would prefer to get to the party at the right time than to get there early and be standing around waiting for the fun to start.”
I have been watching this and there were some good entries, a couple of really good entries here. I just didn’t take them because I didn’t see them, I wasn’t looking at the stock, frankly. There were some good entries here but this one, I looked at this and said, “You know what? I think the party is just getting started.” And so that is when I got in this stock.
Frankly, I don’t think it’s too late for you to get in this stock. They report on the 1st but it just seems to me, the way this is coiled, it is starting to get, not really a green skyscraper here but we are moving in that direction. I suspect over the next couple of days this stock is going to work out really well and so I want you to be there.
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