Usman Salis
Shares of NIO Inc. (NYSE: NIO) have staged an impressive rebound, surging over 120% from recent lows. The chart reveals a clear breakout from a long-standing downtrend, suggesting that the electric vehicle (EV) maker may finally be reversing course. Investors are now eyeing higher price levels as volume and momentum build.
NIO Breaks Downtrend and Hits $5.00
NIO stock recently pierced through a well-defined descending trendline, closing above key resistance levels of $4.21 and $4.35. As of the latest session, NIO is trading at $5.00, with growing bullish volume suggesting a potential shift in trend direction.
Despite the recent rally, the chart shows that the breakout still looks relatively small compared to the steep decline the stock has experienced since early 2021. This supports the view that additional upside could lie ahead if buyers remain in control.
Volume and Technicals Confirm the Move
Volume analysis indicates growing accumulation, especially in the $4.00–$5.00 zone. The breakout candle is supported by a rise in volume and price action moving away from oversold levels. If NIO maintains momentum above the $5.00 mark, traders could set their sights on higher resistance targets, with $13.97 being a potential medium-term objective.
Overall, the technical setup looks bullish as NIO attempts to reverse a multi-month downtrend.
Usman Salis
