Peter Smith
When a stock breaks out of a two-year downtrend, traders take notice. When someone bets their entire weekly portfolio on it without a safety net, the whole market starts paying attention. That's exactly what's happening with NIO right now, as the Chinese EV maker's shares surge past critical levels while one bold trader makes waves with an unconventional approach.
NIO Price Surges Past Resistance
NIO just did something it hasn't done in ages—it actually broke higher. The stock punched through $6.34, finally escaping the downward spiral that's been crushing shareholders since mid-2022.
What makes this move interesting isn't just the price action—it's the conviction behind it. Volume spiked as buyers stepped in, and NIO managed to reclaim both its 50-day and 200-day moving averages. In trader speak, that's usually when things start getting interesting.
The technical picture suddenly looks a lot cleaner. After months of going nowhere, NIO has some breathing room above key support levels.
Traders Swing Trade Plan
Here's where things get spicy. Trader @PunnyBucks isn't just buying NIO—he's going all-in with a strategy that would make most risk managers break out in a cold sweat:
- Buy NIO now
- No stop-loss
- No profit target
- Exit Friday, no matter what
But wait, there's more. He's backing this up by allocating his entire 100,000 SEK weekly swing portfolio to NIO. No diversification, no hedges, no backup plan. It's either going to be brilliant or brutal.
This kind of conviction trade is rare, and when traders see someone willing to put their money where their mouth is like this, they pay attention.
NIO Price Targets and Outlook
So what's next? The breakout above $6.34 clears the path toward $7.14, where the next real resistance sits. If the momentum holds and buyers keep showing up, NIO could surprise people on the upside.
Of course, there's always the other side of the coin. Drop back below $5.00, and this whole breakout story falls apart fast. In that scenario, NIO could find itself sliding back toward the $3.67 area where it's spent way too much time already.
For now though, the bulls are driving the bus. With Friday's exit strategy looming, this week could get interesting fast. Whether analyst bold bet pays off or blows up, NIO traders won't have to wait long to find out.
Peter Smith
