Peter Smith
NIO has been stuck in neutral for months, but that just changed. The stock finally punched through the $6.00-$6.20 resistance zone that had been holding it back and is now trading around $7.04. What makes this breakout different? It came after a solid bounce from $5.40 support, showing there's real buying interest underneath.
What the Charts Are Saying
As trader Surfeando el Merval pointed out, all eyes are now on that descending trendline that's been capping rallies since 2023.
The technical picture is getting cleaner by the day:
- Strong Foundation: That $5.40 support level held firm and now looks like a legitimate launching pad
- Clean Break: Price smashed through descending resistance with solid volume backing the move
- Next Stop: $7 is being tested right now, but if momentum holds, bulls are eyeing $8.00-$8.50 where that long-term trendline sits
- Volume Surge: The breakout came with heavy trading, suggesting institutions are getting involved
- Moving Average Support: The 50-day MA is trending higher, giving the bulls more confidence
Why NIO Is Finally Moving
The technicals are just part of the story. Chinese EV sentiment is warming up thanks to fresh government incentives and NIO's improving delivery numbers. Add in a stabilizing supply chain that should help margins, and you've got fundamental support for the technical breakout.
Peter Smith
