Usman Salis
Nio is back on traders' radars after bouncing from its early-October lows. The stock has climbed above key short-term moving averages, with technical indicators flashing renewed buying interest and momentum. According to @5littlebass, a daily close above $7.20 might confirm a breakout and open the door to the $7.75–$8.00 zone.
Technical Signals Supporting the Bullish Case
According to Trader Chris, a daily close above $7.20 might confirm a breakout and open the door to the $7.75–$8.00 zone
The daily chart from Trader Chris shows several encouraging signs:
- RSI Divergence: The Relative Strength Index is climbing even as prices have stayed flat—a classic sign of building strength and fading selling pressure.
- MACD Momentum: The MACD has flipped positive with a bullish crossover, often an early hint that the trend is reversing.
- Golden Cross Reminder: A previous Golden Cross in late August kicked off a 140% rally, proving Nio can move aggressively after technical breakouts.
- Volume Profile: Heavy accumulation between $6.30–$6.40 provides solid support, while lighter resistance above $7.50 leaves room for upside if buyers keep showing up.
Key Price Levels: Support sits around $6.29–$6.42, with a deeper safety net at $5.14–$5.24. Current price: $7.17. Target resistance: $7.75–$8.00.
Market Context
This technical bounce aligns with a broader recovery in China's EV sector, fueled by supportive policy news, stronger Q3 deliveries, and improving investor sentiment toward names like Nio, XPeng, and Li Auto. That said, macro risks—trade tensions and regulatory uncertainty—still loom large, which is why reminds traders: "Never financial advice."
If Nio closes above $7.20, it could trigger follow-through buying and a run toward $8. The technical setup looks promising, but as always, external factors could shift the picture quickly.
Usman Salis
