Peter Smith
⬤ NIO Inc. (NIO) is showing early signs of bottoming out on the monthly chart, holding steady above its 20-month moving average after printing a fresh higher high. The stock is currently trading around $5.50, trying to carve out a higher low above long-term support—a notable shift from the brutal selloff that started back in 2021 when shares couldn't seem to stay above this average for more than a few weeks.
⬤ The 20-month moving average has flipped from resistance into potential support territory, which is a big deal when combined with that recent higher high. It suggests the trend might actually be turning if buyers can keep things stable here. What's interesting is that this consolidation is happening on lighter volume, meaning there's less selling pressure during the pullback. In the past, NIO kept getting smacked down at this level, but the current setup looks a lot healthier than what we saw during the worst of the downturn.
⬤ Whether NIO can confirm this higher low around the $5.50 zone will be critical for maintaining the improving structure on the longer-term chart. The stock is still way off its old highs, but it finally looks like it's trying to find a floor after years of choppy, volatile trading. The combo of holding support with quieter volume creates an interesting technical picture worth watching.
⬤ This matters because NIO is basically a bellwether for U.S.-listed Chinese EV stocks. If it can stay above that 20-month average, it could shift sentiment across the entire sector heading into 2026. That said, the drop-off in volume shows traders aren't exactly rushing in yet, so how price acts around this support zone should tell us a lot about whether real conviction is building behind NIO shares.
Peter Smith
