Saad Ullah
NIO (NYSE: NIO) just did something it hasn't done in months - it's actually moving up. The momentum shift is real, with NIO jumping 14.5% in a single session to hit $7.31. This isn't just another dead cat bounce - the technical setup suggests something bigger might be brewing.
The Technical Picture Gets Clearer
After getting crushed in a relentless downtrend, the stock is now targeting $9.69, a level that traders like Prof say is "acting like a magnet."
The monthly chart tells the whole story. NIO was stuck under heavy selling pressure for what felt like forever, but now the latest candles show a decisive break above key trendlines. Both descending resistance and moving averages are getting challenged, and that's giving traders the confidence that this could be more than just a short-term pop. The breakout structure is holding, which is exactly what you want to see when a stock tries to reverse a multi-year downtrend.
What's Driving the Move
The rally isn't happening in a vacuum. There's renewed optimism across Chinese EV stocks, boosted by government subsidies and signs that demand is finally recovering. NIO is benefiting from this sector-wide momentum, but it's also got its own technical story going. The stock has broken out of that painful downtrend pattern, creating room for a sustained rally. Trading volumes are picking up too, suggesting both institutions and retail traders are starting to pay attention again. The $9.69 target isn't random either - it lines up with an area where the stock consolidated before, making it a natural magnet for price action.
As long as NIO keeps this breakout structure intact, the path looks pretty clear to $9.69. Hit that level, and you're looking at potential double-digit territory, with $12 being the next major resistance to watch. But let's be real - this is still a Chinese EV stock in a competitive market with plenty of macro risks floating around. The technical momentum is definitely shifting in NIO's favor though, and that $9.69 magnet is looking more achievable by the day.
Saad Ullah
