Peter Smith
Electric vehicle maker NIO Inc. (NYSE: NIO) is catching traders’ attention again as the stock rebounds off a key support level. Recent price action suggests growing bullish interest, but technical resistance looms just ahead. Traders are closely watching whether NIO can maintain momentum and confirm a breakout in the days to come.
NIO Stock Recovers from $3.95 Support Level
After testing critical support at $3.95, NIO Inc. (NYSE: NIO) bounced back to close at $4.11, showing resilience despite a 3.29% intraday dip. The bounce occurred within a larger wedge formation visible on the daily chart, with price now hovering just above the 5-day simple moving average (SMA) at $4.02.
The recent price action suggests bulls are still in control for now, but the next sessions will be crucial in confirming direction.
$4.20 Is the Key to Unlock Higher Highs
For NIO stock to continue its upward momentum, a decisive breakout above the $4.20 resistance level is needed. That threshold is the first of three key barriers, followed by $4.30 and $4.45, which are visible on the chart as previous rejection zones. A successful move beyond these points may drive the price toward the long-term target at $4.96.
However, if NIO fails to reclaim $4.20, a retreat to the $4.02 support or even back to $3.60 is possible, making it a critical inflection point for short-term traders.
Peter Smith
