Usman Salis
NIO has been stuck in a brutal downtrend for years, but something interesting is happening. The Chinese EV maker is showing signs of life, bouncing hard from its summer lows. Now all eyes are on one crucial level that could make or break this recovery story.
Growing Bullish Sentiment
As The Great Mattsby notes, recent price action looks promising for bulls, as noted by technical analysts. The stock is building a decent structure, but the real test comes at $7.70. Break above this resistance zone, and we could see a much more aggressive rally unfold.
Chart Analysis: Testing Key Levels
The weekly chart tells an intriguing story. NIO is currently trading at $6.47, up nearly 4% this week. The stock found solid footing around $4.00 earlier in 2025, which has become a reliable launching pad. But here's the thing - that $7.70 resistance zone, lined up with those long-term descending trendlines, is where the magic needs to happen. Volume is picking up and we're seeing higher lows, which suggests sentiment is shifting. However, there's still risk of a short-term pullback before any major breakout occurs.
Why It Matters
Chinese EV stocks are catching a bid lately thanks to better policy support and fewer supply chain headaches. For NIO specifically, cracking $7.70 isn't just about technical levels - it could bring in fresh money and broader market attention that this stock desperately needs.
NIO is building momentum, but the real action happens at $7.70. Clear that level and we might finally see the end of this painful decline. Until then, traders should stay alert and watch how price behaves at this make-or-break zone.
Usman Salis
