Peter Smith
NIO (NYSE: NIO) is picking up steam again. After weeks of steady gains, the electric vehicle maker has finally reached the $7.60 target many traders had been watching since August. Now all eyes are on the $9 resistance zone, though the real prize remains $18—the level that would signal a true recovery from the multi-year slide.
What the Chart Shows
Trader Gunter Gresch highlighted the technical picture looks pretty straightforward. NIO broke out of its consolidation pattern and hit that $7.60 mark right on schedule. The next hurdle sits around $9, marked by a resistance zone that's been tested before. If the stock can push through there with solid volume, we could see momentum carry it higher. Trading activity has picked up noticeably during this rally, which usually means buyers are serious. The stock is also riding comfortably above its key moving averages, a good sign that the trend has legs. Beyond $9, the path gets trickier, but $18 represents the first major resistance from the longer-term downtrend that's been weighing on the stock for years.
Why It's Moving
A few things are working in NIO's favor right now:
- China's EV market keeps growing: The country remains the world's biggest electric vehicle market, and NIO is positioned to benefit from that demand.
- Better macro backdrop: Talk of interest rate cuts has lifted growth stocks across the board, and NIO is no exception.
- Solid execution: The company's battery-swap network is expanding, new models are rolling out, and its software initiatives are gaining traction—all of which help keep investors interested.
The $9 level is what matters in the near term. A clean break above it, backed by volume, could open the door to $12 and eventually that $18 target. But if momentum stalls, there's a decent chance the stock drifts back down to test support around $6.60. For now though, the bulls are in control, and the technical setup suggests there's more room to run.
Peter Smith
