Peter Smith
Nio Inc. ($NIO) just flashed something traders don't see often—three consecutive bullish monthly candles forming what's called the "Three White Soldiers" pattern. After bottoming at $5.25, NIO could be gearing up for a run toward $13, and the charts are backing it up.
What Makes This Setup Special
As Pax pointed out, this is one of the most reliable signals that a beaten-down stock is ready to turn around. The Three White Soldiers pattern is textbook bullish: three large green candles, each closing near its high and opening within the previous month's range. This isn't just noise—it's a clear signal that sellers are exhausted and buyers are taking control. The key levels tell the story: $5.25 held as rock-solid support during the downtrend, while the next major resistance sits around $13.20. That's nearly double from here if momentum holds.
The price action speaks for itself. After collapsing from over $60 in 2021, NIO spent years in freefall. But three straight bullish monthly closes have changed the narrative. The $7.60–$7.75 zone is now acting as near-term support, and rising volume confirms real accumulation is happening. This isn't retail FOMO—institutions are stepping in.
Why It's Happening Now
This reversal isn't just technical—there's real fundamental momentum behind it. Chinese EV demand is bouncing back, and NIO's delivery numbers in 2025 have been solid. The company's been cutting costs and improving margins, which is exactly what investors wanted to see. Add in Beijing's continued push for new energy vehicles, and you've got policy tailwinds supporting the move. The stars are aligning.
NIO looks like it's in the early innings of a sustained move higher. The confirmed bottom is in, the pattern is rare and reliable, and the path to $13 is clear if the stock holds above $7.60. Traders will be watching that support level closely—break it, and the setup weakens. Hold it, and this could turn into a multi-month rally that rewrites NIO's story. After years of pain, the EV maker might finally be ready to deliver for shareholders.
Peter Smith
