Usman Salis
NIO Inc. (NYSE: NIO) is at a pivotal moment as the electric vehicle maker tests the $7.70 resistance level. After being stuck in a prolonged downtrend, the stock is showing early signs of a possible reversal, and traders are closely monitoring whether it can hold above this threshold.
Technical Setup Points to Possible Reversal
Recent analysis from The Long Investor highlights that NIO needs to break and hold above $7.70 to confirm a bullish trend change. The weekly chart reveals a breakout from a multi-year descending channel, with prices now sitting in the $7.60–$7.70 range—a historically significant pivot zone.
Key technical factors include:
- A falling wedge breakout, which typically signals a trend reversal
- Increased volume on recent up days, suggesting buyers are stepping in
- Price reclaiming the 50-day moving average and approaching the 200-day line
- Clear resistance at $7.70, with potential targets of $10 and $12 if broken
Market Context and Investor Interest
NIO has faced headwinds from softer EV demand in China and intense competition from Tesla, BYD, and domestic rivals. But recent improvements in delivery figures and a more supportive regulatory environment in China have brought renewed attention to the stock. A decisive move above $7.70 wouldn't just confirm technical strength—it could pull in institutional buyers looking for validated breakout opportunities.
If NIO manages to hold above $7.70, momentum could build quickly toward the $10–$12 range. But if the stock gets rejected at this level, it risks sliding back to support around $6.20 or even $5.00. The next few sessions will be crucial in determining which path the stock takes.
Usman Salis
