Saad Ullah
NIO stock (NYSE: NIO) took a beating yesterday, closing at $4.51 after dropping 4.25% during the session. This Chinese EV maker is now dancing around a make-or-break support level at $4.40. If that level doesn't hold, things could get ugly fast.
NIO's $4.40 Support Could Be Make or Break
The trading action wasn't pretty – NIO opened at $4.60, briefly touched $4.84, then slid all the way down to $4.51 by close. That $4.40 level everyone's watching? It's not just any random number. It's both technical support and a key pivot point in NIO's upward channel.
Here's the scary part: "If price breaks below $4.40, we could see a move toward $3.60 — and that is no good," the trader warned. That's talking about a potential 20% drop from current levels if support fails.
What Happens if NIO Bounces?
But let's say NIO does hold that $4.40 support. Bulls still have their work cut out for them with resistance levels stacked up like this:
- $4.60 – First hurdle to clear
- $4.75 – Where things get interesting
- $4.90 – The real breakout zone
With NIO's market cap sitting at $9.41 billion and trading volume looking thin, investors are clearly being cautious around these technical levels. The stock's had quite a ride this year, bouncing between a high of $7.71 and a low of $3.02.
Saad Ullah
