Peter Smith
NIO has been one of the most punishing stocks for long-term holders, grinding lower since its 2021 peak. But something's changing. The Chinese EV maker is now testing a critical technical level that traders haven't seen challenged in years. If it breaks through, we could be looking at the end of one of the market's most notorious downtrends.
Key Technical Levels to Watch:
- Red trendline from 2021 highs represents core resistance
- Current price above $7 shows recovery momentum
- Weekly chart signals steady climb from mid-2025 lows
- Breakout requires sustained move above downtrend line
The technical picture is getting interesting. As WarInChineseBuffet pointed out, that red line drawn from 2021 is everything right now. It's been the ceiling for years, crushing every rally attempt. But here's the thing about major trendline breaks - they don't always lead to instant fireworks. More often, you get weeks or months of choppy action right around that line before the real move happens.
What's driving this potential turnaround? The EV space is heating up again, especially in China where demand signals are getting stronger. There's also chatter about new government support policies that could boost the entire sector. NIO's climbing back from some seriously dark lows, and the weekly chart shows real momentum building.
The Bottom Line
Breaking that 2021 downtrend would be huge for NIO - potentially opening the door to a legitimate recovery toward previous highs. Sure, getting back to triple digits is still a long shot, but for the first time in years, the technical setup actually gives bulls a fighting chance. The key now is whether NIO can hold above that critical line and start building real momentum. This could be the inflection point everyone's been waiting for.
Peter Smith
