The analysis focuses on NIO stock, which has reached a price target of $6.00 after breaking out of a pennant pattern. Three days of price action validated the breakout. The analysis identifies $7.70 as the next target, which stems from a descending triangle pattern formed before the breakout. The stock experienced resistance around $5.20, forming a pennant, characterized as a textbook flag and pole. On the weekly timeframe, a descending triangle pattern suggests a potential 100% move upward, aiming for $7.70. The analysis also explores a smaller descending triangle within the longer-term pattern and points out resistance at $5.20, which previously acted as a barrier. Now it is important to keep above 6 if sellers come down, and be careful, above it that it will keep moving up.