Peter Smith
NIO (NYSE: NIO) just hit $7.25 and everyone's watching what happens next. The Chinese EV maker is staring down a massive resistance wall between $7.6 and $9 - the kind of zone where rallies have died before. But here's the thing: if NIO can punch through $7.8 and hold it, this could be the breakout that changes everything.
What the Charts Are Screaming
The technical picture is pretty clear. NIO's running straight into what traders call a bearish order block - basically a zone where sellers have stepped in hard before. This $7.6 to $9 range isn't just any resistance; it's where the stock has gotten rejected multiple times. Breaking through won't be easy, but the rewards could be massive.
A pullback to $6.2 is still on the table, and that's not necessarily bad news. Analyst Pax points out that healthy uptrends need these dips to reload. Smart money often uses these moments to add positions, especially when the stock stays above key support levels.
The $7.8 Magic Number
Everything hinges on one level: $7.8. Get above that and hold it, and NIO transforms from a struggling recovery story into a momentum play. Once that level flips to support, it could trigger a chain reaction - fresh buyers pile in, shorts get squeezed, and suddenly double-digit prices don't look so crazy anymore.
The current setup screams patience. NIO might bounce around this resistance zone for a while, creating some choppy trading. But the bigger picture looks solid. If we see a clean close above $7.8, the stock could be setting up for its best run in months. Sometimes the best moves come right after the toughest resistance finally breaks.
Peter Smith
