Saad Ullah
Chinese electric vehicle maker NIO has caught traders' attention with a decisive breakout from its long-term downtrend. After months of decline, the stock is showing renewed strength, but the question remains: can bulls maintain this momentum and push toward higher targets?
NIO Price Breakout Signals Strong Bullish Momentum
NIO stock has exploded higher after breaking free from its extended downtrend pattern. The price jumped to $6.51 before pulling back to $6.26 (down 1.30%), now consolidating above the important $6.00 psychological barrier.
Trader @TheValueTrade notes that this breakout marks NIO's entry into a fresh bullish phase. The clean break higher, followed by a healthy pullback, creates an attractive setup for traders looking to add positions.
Key Levels for NIO Price: Support and Resistance to Watch
NIO's technical picture shows strong upward momentum, though volatility remains elevated. Here are the critical levels traders should monitor:
Support levels:
- $6.30 – Immediate support that must hold for continued upside
- $4.54-$4.30 – Medium-term support zone aligning with key moving averages
- $3.29-$3.02 – Deep retracement levels representing major long-term support
Resistance target:
- $7.00 – Primary upside target if bulls can reclaim $6.51
The chart structure suggests bulls remain in control as long as NIO holds above $6.30 on closing basis.
While the recent rally looks promising, NIO may need to consolidate before attempting another leg higher. A solid hold above $6.30 would confirm bullish momentum and set up a potential test of $7.00 resistance.
However, if $6.30 fails to hold, expect a correction toward the $4.54-$4.30 support cluster where major moving averages converge. In a worse-case scenario, a deeper drop to $3.29-$3.02 remains possible if selling pressure intensifies.
Saad Ullah
