Peter Smith
NIO grabbed traders' attention after delivering a powerful 8% surge on Friday. The Chinese EV maker is showing fresh momentum following a false breakout recovery, leaving market watchers buzzing about the next move higher.
NIO Stock Price Action: Bulls Step Up After Friday's Rally
Friday told a compelling story for NIO shareholders. The stock closed at $4.81 with a solid +8.09% gain, trading between $4.55 and $4.82 throughout the session.
What caught traders' attention wasn't just the price move, but how it happened. Despite an earlier false breakout, buyers jumped right back in - the kind of resilience that often signals bigger moves ahead. Heavy volume of over 69.02 million shares backed up the bullish action, suggesting institutional involvement beyond just retail momentum.
NIO Stock Breakout Setup Points to Higher Targets
Technically, NIO is bumping against a descending trendline that's acted as resistance for months. The stock appears ready for a breakout attempt, with logical targets around $5.00-$5.30 if momentum continues.
If buyers lose steam, there's always the $4.50 support level as a fallback before the next leg higher. But based on Friday's recovery and volume surge, many traders are betting this breakout attempt could succeed.
The setup looks increasingly bullish heading into next week. A break above Friday's $4.82 high with volume could signal the start of a bigger move toward those $5+ targets.
Peter Smith
