Nio (NIO) Stock Is Still Bullish, but Needs Time to Consolidate, the Trader States

Nio's Stock Is Passive, but the Growth Is Coming

Throughout this week, the shares of the Chinese electric vehicle company, Nio, have been rather passive, fluctuating between $27 and $28 per share.

This comes against the backdrop of last week's frenzied rally, which saw shares of the Chinese company rally more than 30%, which came to a standstill as suddenly as it began.

Nevertheless, the trader @ShardiB2 believes that there is no reason to worry, the bullish trend will continue. The current stagnation is only a consolidation before further growth.

The trader's technical analysis does show long-term support lines at the indicated levels. Besides, you can see that the previous consolidations looked the same and ended with the resumption of growth.

Jim Kramer, a renowned analyst and the founder of TheStreet, also believes that NIO's stock will rise soon.

Nio's Long-Term Prospects Are Bullish Too

The analysts' long-term forecasts also demonstrate that the stock will continue to rise, J.P. Morgan raised their target price to $40 per share, indicating the pace of Nio's business growth as well as many innovative solutions such as Battery-as-a-Service.

The CEO of the company, William Li, is already preparing for the growing demand for Nio's electric vehicles: he announced a doubling of the production capacity of the Nio's factory in China, and by the end of 2021 the company is going to reach a capacity of 300 thousand electric vehicles per year.