Saad Ullah
NIO's recent price action has caught the attention of technical traders as the Chinese EV maker achieves a significant milestone. After years of struggling below key resistance levels, the stock has finally reclaimed an important technical threshold that could signal the start of a new uptrend.
NIO Price Closes at $6.38 — First Bullish Signal Since 2020
Analyst @dirtygreenpaper recently highlighted that NIO has delivered one of its strongest monthly performances in years. The stock closed at $6.38, successfully breaking above the 21-month EMA at $6.79. This marks the first time since June 2020 that NIO has reclaimed this crucial technical level.
The last time NIO achieved this breakout, it triggered an impressive rally that sent the stock from single digits to over $60 within twelve months. This fresh breakthrough has reignited interest among investors who see it as a potential turning point for the struggling EV stock.
Why the 21-Month EMA Matters for NIO Price
The 21-month EMA serves as a critical momentum gauge for institutional traders and long-term investors. For NIO, breaking above this level after an extended downtrend suggests that selling pressure may be easing and a new bullish phase could be emerging.
Key levels to watch include resistance at $7.19 and support in the $5.50–$5.80 range. If NIO maintains these levels, analysts believe a move toward $10–$12 becomes increasingly likely.
What Could Fuel the Next NIO Rally?
Beyond technical factors, NIO's fundamentals continue improving as the company expands its vehicle lineup and production capacity. Additionally, growing optimism around Chinese stocks could provide additional tailwinds.
The combination of technical breakout and improving sentiment mirrors the setup from 2020 that preceded NIO's explosive rally. While past performance doesn't guarantee future results, many traders are watching closely to see if this breakout can develop into a sustained bullish trend.
Saad Ullah
