Saad Ullah
NIO shares have been on a strong upward trajectory, rebounding from earlier lows and breaking through multiple resistance levels. The latest technical setup points to further upside potential, with the stock consolidating above key support zones and putting pressure on short sellers.
Chart Analysis: Momentum and Key Levels
According to StockChaser's technical analysis, the daily chart confirms a well-defined bullish structure.
NIO has already cleared the 1.618 Fibonacci extension at $5.66 and the crucial 2.618 level at $7.08, signaling sustained buying strength throughout the recent rally. The stock is currently consolidating around $7.00 after touching $7.27, effectively turning former resistance into near-term support.
The 3.618 Fibonacci extension points to $8.51 as the next bullish objective, creating a clear roadmap for continued upside momentum. Both the 50-day moving average around $5.57 and the 200-day at $4.46 slope upward, reinforcing the long-term bullish trend and providing additional technical support for the current advance.
Why NIO Is Rallying
Growing optimism in the Chinese EV sector has reignited institutional interest in NIO, creating favorable sector tailwinds that support the current rally. Earlier descending wedge breakouts triggered a strong wave of accumulation, with technical traders recognizing the bullish pattern completion. Additionally, bears betting against NIO may face increasing short squeeze risk, potentially accelerating the rally as they're forced to cover positions.
Bulls Eye $8.50
The path toward $8.50 appears technically supported, provided NIO maintains its position above the critical $7.00 level. A decisive breakout above $7.30 could serve as the catalyst for another significant leg higher, as this would clear the recent consolidation range. With momentum building and technical indicators aligned, short sellers may find themselves increasingly vulnerable as bulls continue pressing their advantage in this evolving setup.
Saad Ullah
