Saad Ullah
NIO Inc. (NYSE: NIO) just delivered its strongest signal in years that the bleeding might finally be over. After getting hammered yesterday, the stock came roaring back, reclaiming technical levels that have acted as resistance for months. The chart is painting a picture that has bulls getting excited - and for good reason.
Chart Breakdown: The Moment Everyone's Been Waiting For
The monthly chart tells the whole story. NIO just closed above both its 20-period EMA and SMA for the first time since the 2021 crash. That's not just a statistical win - it's a psychological breakthrough after years of getting crushed.
Right now, the stock is bumping up against the upper Bollinger Band around $6.50. This has been a brick wall before, but if buyers can punch through, we could see some serious fireworks. Trader JDB nailed it when he pointed out that the market basically shrugged off yesterday's dilution fears. A 9% drop followed by a 7% bounce? That's not panic selling - that's a market that's ready to move higher.
The key levels everyone should be watching:
- Support at $4.70 - This is where the bulls need to hold the line
- Resistance at $6.50 - Break this and things get interesting fast
- Target around $10 - The psychological level that could bring in serious momentum
- Danger zone below $4.70 - Fall here and the bullish story falls apart
Why This Time Feels Different
The EV sector is catching a bid again, and that's lifting all boats. When you combine sector momentum with a technical breakout that's been years in the making, you get the kind of setup that can really run. The market seems to have moved past worrying about share dilution and is focusing on the recovery potential instead.
Saad Ullah
