Saad Ullah
NIO was once among the most exciting electric vehicle plays on Wall Street. But after peaking above $60, the stock entered a brutal multi-year slide that pushed it down to around $4, shaking out all but the most patient believers. Now, though, something's changing. The charts are hinting at a possible turnaround, and the kind of setup that often catches skeptics off guard.
Chart Analysis
Looking at the weekly timeframe, NIO's descent has been unforgiving—a clean pattern of lower highs and relentless selling pressure that wiped out nearly everything the bulls had built. But recently, the stock punched through a long-term descending trendline and is now holding above $7. Volume has picked up noticeably, suggesting real buying interest is returning rather than just another false start. Trader Prof has noted that the next big test sits around $11.
If NIO can reach that zone and hold, it would mark a meaningful shift in both structure and sentiment, potentially opening the door for further upside.
Why Investors Are Watching
A few key drivers are feeding the renewed interest in NIO:
- Chinese EV policy support continues to prop up domestic demand
- Improved deliveries and production stability have eased earlier concerns
- Short covering appears to be adding fuel as bearish positions get squeezed
These aren't just chart games. There's real backing from policy trends, operational improvements, and positioning dynamics that make this rally feel different from prior head fakes.
Final Thoughts
NIO remains deeply divisive. Some see a broken promise, others see a second chance. But the move off multi-year lows is hard to dismiss. If the stock can push toward and past $11, it won't just validate the bulls - it could light a fire under the entire EV space. Sometimes the most beaten-down names deliver the sharpest reversals, and NIO might be gearing up to prove exactly that.
Saad Ullah
