Usman Salis
The electric vehicle sector has been known for its explosive price movements, especially around earnings season. NIO Inc., the Chinese EV manufacturer, just delivered one of those moments that gets traders excited. What started as another earnings report quickly turned into a technical setup that has analysts updating their price targets and watching for what could be a significant trend reversal.
Trader Breaks Down NIO's Bullish Engulfing Candle
The action was all captured on TradingView charts. NIO closed at $9.93, up $0.30 or 3.13% for the day. But the real story is in how it got there. Trader @ShaunTrades_ spotted the key technical signal - a massive bullish engulfing candle that formed on the daily chart.
Here's what happened: The stock opened way below the previous day's close, looking like sellers were in control. But then buyers stepped in hard, pushing the price not just higher, but above where it started the day before. This completely swallowed up the previous red candle, showing buyers had taken charge.
This pattern came after a rough stretch for NIO, which fell from around $9.00 in April down to test $6.00 support through the summer months.
The NIO Forecast: Can the Stock Reach $9?
Now that the bullish signal is confirmed, what's next for NIO? According to @ShaunTrades_, the stock will probably bounce around between $6 and $7 for a bit. That's totally normal after a big move - the market needs time to digest the rally and build new support.
But the bigger picture looks promising. The analysis suggests "more upside than downside" from here, which is a nice way of saying the odds favor higher prices.
The first target to watch is $7.20. If NIO can break cleanly above that level, it opens the door for a much bigger move toward the main target of $9. That's not a random number - it's where the stock peaked back in April, making it a natural resistance level.
A rally to $9 would mean over 50% gains from current levels. That kind of move would signal a real trend change and get the whole market paying attention.
Between the strong technical pattern and solid earnings catalyst, NIO has become a stock worth watching closely. Sure, it'll probably stay volatile, but the market just sent a clear message that the bulls are back in the game.
Usman Salis
