Weekly Newsletter
NIO
Today we are looking at NIO, a Chinese CO MANUFACTURES AND SELLS ELECTRIC VEHICLES AND PARTS, As Well As Provides Battery Charging Services.
Fundamentals-
Earnings Per Share (EPS) change last quarter: 64%
Sales ChangeLast Quarter: 159%
Definitions:
Earnings Per Share: Earnings per share indicate the profitability of a company. It is calculated dividing a company’s net income over the company’s outstanding shares of stock.
Trendlines: Trendlines are a visual representation of support and resistance in any time frame. They show direction and speed of price, and also describe patterns during periods of price contraction.
Support and Resistance:
Support: A price at which buyers come in to buy and support a stock. A stock tends to not go much lower than support.
Resistance: A price at which sellers exist that prevent a stock from going above. A stock tends to go lower when it reaches resistance.
Key Point: After resistance is broken, i.e. price goes and stays above it, that resistance now becomes new support. After support is broken, i.e. prices go and stays below it, that prior support now becomes new resistance.
Chart Analysis: Referring to the chart, the support and resistance lines are labeled in red and the trendline labeled in green.
Lessons:
Ronak
ronak@rpmassets.com