Peter Smith
NIO wrapped up September at $7.62, posting a solid 6% gain for the month. After an extended period of weakness, the stock has finally punched through the upper Bollinger Band - a technical signal that often hints at shifting momentum and the early stages of a reversal.
Technical Picture
Market analyst JDB points out that the setup has been textbook, with accumulation beginning around the $4.87 level. The recent breakout above Bollinger resistance strengthens the bullish argument, though traders should keep in mind that NIO remains a volatile play.
Here's what stands out on the chart: the price closed above the upper Bollinger Band for the first time in years, both the 20-period SMA and EMA are starting to flatten out (suggesting a momentum shift), strong support holds at $4.87 with secondary support around $6.90, and resistance levels worth watching are $8.50–$9.00, followed by $12.
Why It Matters
The EV space has been grinding through tough conditions - intense competition and squeezed margins have weighed on sentiment. But NIO's recent delivery figures and a bit of fresh optimism around Chinese stocks have given the company some breathing room. If this momentum sticks, the breakout could be the start of a meaningful recovery over the next few months.
Peter Smith
