Usman Salis
NIO (NYSE: NIO) is finally catching a bid after years of pain. The stock's sitting around $7.55, and the charts are starting to tell a story bulls want to hear. Both short-term and long-term patterns suggest something's brewing - and traders are eyeing that round $10 number as the next major target.
Daily Action: Coiling for a Move
As Prof put it: "$NIO is going to hit $10. There is no question about it." That might sound bold, but the setup's there. Short-term support at $7.10 needs to hold, but if bulls keep pushing, $10 isn't some fantasy target - it's the logical next stop on this chart.
The daily chart shows NIO stuck in a tight symmetrical triangle after bouncing hard from $5.50. Key levels to watch:
- Resistance at $7.74 - the upper boundary that's kept a lid on price
- Support around $7.10 - where buyers keep stepping in with volume backing them up
- Breakout zone at $7.75 - crack this and $8.00 opens up, with $10 as the bigger prize
This kind of compression usually doesn't last. When triangles tighten like this, volatility tends to follow.
Monthly Picture: The Bigger Shift
Zoom out and things get more interesting. NIO's finally broken free from a brutal multi-year downtrend that started at those $60+ highs back in 2021. The stock found a floor near $5, carved out a base, and just broke through its long-term resistance trendline. That's not just noise - it's a potential regime change in how the market views this name. The monthly chart leaves plenty of room for a run toward $10, which lines up with old consolidation areas.
The bullish case isn't just lines on a chart. China's still backing its EV sector with policy support, giving domestic players like NIO some cushion. The company's battery-swap model and premium positioning set it apart from the pack. Plus, risk appetite is back - growth stocks and EVs are getting another look as investors rotate back into beaten-down names.
Usman Salis
