Usman Salis
After getting hammered for nearly four years, NIO might finally be showing signs of life. The Chinese EV maker just posted its strongest technical signal in ages, and traders are starting to take notice.
NIO Price Shows First Strong Reversal Signs
NIO closed at $6.51 on Wednesday, up 2.68% and sitting pretty above a key technical level that's been out of reach for way too long. For the first time since its brutal slide began in 2021, the stock managed to close above its 20-month EMA – and that's no small feat.
Trader @JDB_trading pointed out that anyone following his strategy would've gotten in around $4.87 last month and could now add to their position. The key? Give these trades room to breathe with wide stops below monthly lows. Getting shaken out early is the quickest way to miss the real move.
Why EMA20 Matters for NIO
The 20-month EMA at $5.77 isn't just another line on the chart – it's been NIO's make-or-break level historically. Back when the stock was actually moving up, holding above this average meant good things were coming. Now that NIO's back above it, the technical picture is starting to look interesting again.
The 20-month SMA at $4.72 provides solid backup support. As long as NIO stays above these levels, bulls have something to work with.
The play here is straightforward: stay long above that EMA20 level while keeping stops below monthly lows. If this momentum actually sticks, we could see NIO push toward $8-10 over the next few months.
But let's be real – if it can't hold $5.77, and especially if it drops back below $4.70, this whole reversal story falls apart pretty quickly.
Usman Salis
