A caller during the “Lightning Round” segment on Wednesday Bad money Jim Cramer asked on NIO Inc. (NIO): “Pass, pass, pass hard. I’m not fooling around anymore,” was his reply.
We reviewed the NIO lists on July 9 when Cramer was also questioned about NIO in Bad money. At the time, Cramer told viewers to sell and we wrote: “If we knew what China will do and how traders will react, it would be easy to make a recommendation. NIO closed its lows on Thursday and that’s a good sign. Follow up on buying. today will improve things. Continue to hold long positions risking a close below $ 40. ” The traders reportedly stopped at the end of the month.
On this updated daily NIO bar chart below, we can see that prices are trading below the 50- and 200-day declining moving averages. The trading volume has been declining for several months and that tells us that traders have lost interest in these stocks and have moved their attention and money elsewhere.
The equilibrium volume line (OBV) has been flat and did not improve when prices rose in May and June. The Moving Average Convergence Divergence Oscillator (MACD) is bearish.
On this weekly NIO candlestick chart, we see a bearish picture below. Prices are trading below the decreasing line of the 40-week moving average.
The weekly OBV line is not helpful and the MACD oscillator is crossing below the zero line for a direct sell signal.
On this daily NIO point and figure chart, below, we can see a possible downside price target in the $ 34 area. $ 34 will be a new low for the move to the downside and could precipitate further losses.
On this weekly NIO point and figure chart, below, we can see a price target of $ 31. A trade at $ 30 will be more bearish.
Fund strategy: NIO graphs are not positive. To avoid.
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