Usman Salis
NIO just pulled off something that hasn't happened in a while—a convincing breakout that's got traders talking. The Chinese EV maker is finally showing some life, but can this rally actually stick?
NIO Price Breaks Out With Strong Momentum
NIO jumped to $6.43 today with a solid +4.74% gain that caught attention. What makes this move interesting isn't just the size—it's how clean the breakout looks.
The stock cleared both its 50-day moving average at $4.27 and 200-day at $4.31. Getting above both these levels usually signals something's shifting in the stock's favor. It's like NIO just woke up from a long slumber.
Professional trader @TheValueTrade has been tracking NIO's setup and points to some interesting levels ahead. The stock reclaimed that crucial $4.29 Fibonacci level, which was acting like a ceiling for weeks.
Now that NIO's broken free, the next target is $5.68 (1.618 Fib extension). If momentum kicks in, we could see $7.13-$7.37, with an ultimate target at $8.09.
Can NIO Maintain Its Bullish Trend?
Here's the tricky part—NIO has burned traders before with false starts. The key thing to watch is whether NIO can close above $6.20 weekly. That would give bulls real confidence to push higher.
But if the stock loses $5.68 support, all bets are off.
Key Levels to Watch:
- Support: $5.68 and $4.31
- Resistance: $7.13, $7.37, and $8.09
The next few weeks will tell us if this is a sustained breakout or just another false dawn.
Usman Salis
