Saad Ullah
NIO broke through the $4.50 support level today, leaving traders wondering if the next stop is $4.30. The stock's 2.17% drop has everyone watching the 200-day moving average closely.
NIO Price Breaks Key Support at $4.50
Nio Inc. (NYSE: NIO) had a rough day on August 5, dropping 2.17% to close at $4.50. What started as a decent opening above $4.60 quickly turned sour as sellers took control throughout the session.
The break below $4.50 wasn't just any ordinary decline – this level had been holding up pretty well recently. Now that it's gone, traders are eyeing the 200-day simple moving average at $4.30 as the next line of defense.
Market watchers noted: "Preferable if it reclaims $4.50 until today's close." Unfortunately for the bulls, that didn't happen, which means we could see more downside pressure heading into tomorrow.
Will NIO Find Buyers at These Levels?
Here's where it gets interesting for long-term investors. Despite today's weakness, there's still plenty of optimism floating around. As one market observer put it: "If you're long, buying at any level sub-$5 is a bargain."
That's the kind of thinking you hear from people who believe in NIO's electric vehicle story. Sure, the stock's been beaten up by trade tensions and tariff worries, but some see this as exactly the kind of dip worth buying.
The big question now is whether $4.30 can act as a floor. If it holds, we might see some bargain hunting kick in. If it doesn't, well, that's when things could get really interesting for the bears.
The next few trading sessions should tell us a lot about where NIO's headed in the short term. Bulls need to see some buying interest soon, or this slide could pick up steam.
Saad Ullah
