Usman Salis
After months in the wilderness, NIO might finally be ready to make its move. The Chinese EV maker is sitting at one of the most crucial technical levels in its trading history, and what happens next could make or break this recovery story.
NIO Price Action and Key Levels
NIO just posted an impressive +18% weekly gain, bouncing hard from solid support around $3.15. Now it's bumping up against the 200-week moving average—and this isn't just any technical line.
According to trader @TheLongInvest, this level basically separates bulls from bears. If NIO punches through and holds above it, we could see a complete shift in market sentiment.
The falling wedge breakout looks textbook, with immediate resistance at $8.00 and a major target at $13.90. On the downside, NIO needs to stay above $5.00-$4.70 to keep this recovery intact.
Long-Term Technical Outlook for NIO
Remember NIO's wild 2020-2021 surge followed by that brutal downtrend? The recent breakout suggests the stock might be done with its correction phase.
Bulls are eyeing targets beyond $13.90, with some talking about a return to $20.00 if momentum builds.
Here's the key question: can NIO close above that 200-week moving average? Success here could signal the start of a major reversal, while failure means more sideways action.
Usman Salis
