Peter Smith
After bleeding from $66 to under $6, NIO might finally be showing signs of life. The Chinese EV maker just broke out of a nasty downtrend, and technical analysts are starting to whisper about a potential 90% rally. But here's the catch—it won't happen overnight.
NIO Stock Shows Signs of Life After Brutal Selloff
NIO is currently trading at $5.86, up a solid 9.40% on the weekly chart. That might not sound like much, but for a stock that's been in free fall since 2021, any green is good news.
What's got traders talking is the clean breakout from a descending channel—one of those patterns that often marks the end of the worst selling pressure. Even better, NIO is holding above its 50-week moving average, which is acting like a floor under the stock price.
This isn't just random chart noise either. When beaten-down stocks start respecting key technical levels again, it usually means institutional money is quietly stepping back in.
NIO Price Target: $11.10 Represents 90% Upside Potential
Here's where it gets interesting. Experienced traders are eyeing NIO's 200-week moving average, which sits at $11.10. That level represents nearly a 90% pop from current prices—not bad for a stock that most investors had written off.
The theory is simple: prices have a tendency to snap back to long-term averages, especially after extreme moves. NIO's crash from $66 to $5.86 definitely qualifies as extreme, and now the rubber band might be ready to bounce back.
But don't expect fireworks tomorrow. Smart money knows this kind of recovery takes time. We're talking months, not weeks, for NIO to potentially climb back toward that $11.10 target. The key is whether the stock can keep holding above support levels while broader market conditions stay cooperative.
For patient investors willing to ride out the volatility, NIO's setup looks increasingly attractive. Just remember—this is still a Chinese EV stock, so expect plenty of bumps along the way.
Peter Smith
