Usman Salis
After months of sideways grinding, NIO just delivered something that has traders doing double-takes at their charts. The Chinese EV maker has broken through a technical barrier that's been holding it back for nearly two years. Could this be the start of something bigger?
NIO Price Crushes 20-Month Resistance Level
NIO has exploded 25% higher to hit $6.10, smashing through itsAccording to trader @cantonmeow, the stock has broken above its 20-month SMA at $4.70 like it wasn't even there. This isn't just any ordinary breakout—we're talking about a level that's been acting as a ceiling for almost two years.
What makes this move even more interesting is the timing. The Bollinger Bands have been in a tight squeeze, which often precedes explosive moves. Meanwhile, the RSI is sitting at 47.54, showing momentum is building but there's still plenty of room to run before hitting overbought territory.
For NIO bulls who've been stuck in the trenches through years of volatility and disappointment, this breakout feels like vindication. It's the first real sign that the higher timeframe trend might finally be shifting in their favor.
NIO Stock Faces Key Test at Upper Bollinger Band
Here's where things get tricky. NIO is now bumping up against the upper Bollinger Band at $6.36, which could act as a speed bump for the rally. If buyers can't push through this resistance with conviction, we might see some profit-taking and a pullback to retest those support levels.
But here's the thing—the bigger picture is starting to look pretty compelling. The long-term downtrend that's been crushing NIO for years appears to be breaking down. If buyers can maintain this pressure and hold above that crucial $4.70 level, we could be looking at the beginning of a legitimate trend reversal.
The setup hints at bigger moves ahead if the momentum continues. For a stock that's been beaten down as much as NIO, these kinds of technical breakouts can turn into sustained rallies when the fundamentals start aligning.
Usman Salis
