Saad Ullah
NIO's recent rally has hit a significant roadblock as the stock encountered fierce resistance in what traders call the Smart Money Zone. This rejection has sparked concerns about a potential pullback, putting key support levels back in focus for investors looking for entry opportunities or exit strategies.
NIO Price Rejected at Key Resistance
NIO's impressive run came to an abrupt stop when it hit the $6.50–$7.00 range – an area that traders have marked as the Smart Money Institutional Selling Zone. The sharp rejection from this level sent the stock tumbling, proving just how important this resistance area really is.
Trader @pdicarlotrader highlighted the setup, saying: "NIO rejected perfectly. Bearish rejection off the Smart Money Zone. If momentum holds, worst case we see a pullback to $5. That's where I'll be looking to load up."
Resistance: $6.50–$7.00 Smart Money Zone
Support 1: $5.00 (main pullback target)
Support 2: $4.50 (high-volume area)
Current price: $6.06 (–7.90%)
The $5.00 level lines up with heavy trading volume on the charts, making it a natural spot where buyers might jump back in if the selling continues.
Outlook: Pullback or Opportunity for NIO (NIO)?
Bulls might see a drop to $5.00 as a good buying chance before the next move up. Bears, however, think that NIO's failure to break through the $6.50–$7.00 wall leaves it vulnerable to more downside.
If the stock finds its footing around $5.00, it could signal that institutions are done selling. But if buyers don't show up at that level, NIO might have further to fall.
NIO's bounce off institutional resistance has traders being more careful. A move down to $5.00 looks pretty likely if the selling pressure keeps up, though this same area could turn into a great spot for long-term investors to build positions.
Saad Ullah
