NIO should keep dropping to end an impulse structure

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 November 2023

In the chart above, we can see how NIO made a wave I of (c) ended at 11.67 low and wave II bounce finished at 24.43 high. Market continued lower making 5 waves down, and the wave ((5)) of III made an ending diagonal structure completing at 7.33 low. Then, took a part a 3-3-5 flat correction as wave IV ending at 16.18 high.

From 16.18 high, NIO made a strong move to the downside. Wave (1) of ((1)) ended at 9.46 low, then bounced making a zig zag structure finishing wave (2) at 11.35. The momentum continued sending the stock to 7.93 to complete wave (3). A small reaction higher ended wave (4) at 9.22 and continued lower to completed wave (5) of ((1)) at 7.18. This wave ((1)) is the wave ((1)) of V that at the same time is the wave V of (c) of ((II)).

NIO daily chart February 2024

After almost 4 months, NIO continued developing the propused impulse as wave V. Up from wave ((1)), wave (A) ended at 8.51 high. Then 3 swings lower completed wave (B) at 7.01 and an ending diagonal higher ended wave (C) at 9.57 high and also wave ((2)) as an expanding flat correction.