Two shares with the potential to advance

TL;DR

NIO shares have shown positive signs of recovery after announcing strong car deliveries and increased transparency, with potential for further advances. Tesla experienced a false breakout but remains in an overall uptrend.

Transcript

hello it's john burford with chart of the week for monday the 4th of april uh brand new quarter and i want to kick off this quarter with uh another look at one of the ev shares that uh i covered last year this is uh nioh or neo a chinese company um and uh when i recommended it last year um it was a bit premature i think it was around around this pe... Read More

Key Insights

• 😨 NIO shares faced a significant decline but have shown signs of recovery after strong car deliveries and increased transparency.
• ❓ Concerns about Chinese company accounting standards have impacted the confidence of investors in Chinese startups.
• 💁 The technical analysis suggests that NIO shares have formed a correction pattern, indicating a potential uptrend.
• 📈 Tesla's chart reveals a false breakout but maintains an overall upward trend.

Questions & Answers

Q: What factors caused the decline in NIO shares?

The decline in NIO shares was primarily driven by concerns over Chinese company accounting standards, especially among startups and small firms. This uncertainty led to a loss of investor confidence.

Q: What recent developments have positively impacted NIO shares?

NIO announced higher car deliveries than expected and a willingness to allow US authorities to assess their books and apply their own accounting standards. These developments have instilled trust in investors and sparked an increase in share prices.

Q: What is the technical outlook for NIO shares?

Technically, NIO shares have formed an a-b-c correction pattern, indicating a potential uptrend. The stock has broken resistance lines and is expected to continue its upward movement towards targets around $32 and $42.

Q: How does Tesla's chart compare to NIO's?

Tesla's chart experienced a false breakout, creating concern among technical traders. However, the overall trend for Tesla is still upward. The recent move above resistance levels has transformed them into support, potentially leading to further gains.

Summary & Key Takeaways

• NIO shares experienced a significant decline from their peak due to concerns about Chinese company accounting standards, but recent announcements of higher-than-expected car deliveries and improved transparency have boosted investor confidence.

• The technical analysis suggests that NIO shares have formed a three-wave corrective pattern, indicating a potential uptrend. Resistance lines have been surpassed, and further advances towards $32 and $42 are expected.

• Tesla's weekly chart reveals a false breakout, causing unrest among technical traders. However, the overall trend remains upward, and the recent move above resistance levels has turned them into support, suggesting that the stock may continue to rise.