Saad Ullah
⬤ NIO Inc. is facing a make-or-break technical zone as it trades below both the 0.618 Fibonacci retracement and its 200-day moving average. Reclaiming these levels is essential for any meaningful recovery, while rejection near $5 could send the stock toward lower support targets.
⬤ The stock has dropped from late-2025 highs in the $7–$8 range and found a temporary floor around mid-$4. During this decline, NIO slipped below its 200-day moving average, which now sits near $5 and acts as overhead resistance. The 0.618 Fibonacci retracement at $4.93 lines up almost perfectly with this moving average, creating a reinforced resistance zone that bulls need to break through.
⬤ Recent price action shows an attempt to bounce from local lows, but the recovery remains unconvincing while NIO stays trapped below the $5 confluence zone. If the stock fails to reclaim this level, the next downside target sits at the 0.786 Fibonacci retracement near $4.09. That's where traders will be watching for potential support if weakness continues.
⬤ This setup matters because it shows how moving averages and Fibonacci levels continue to dictate price behavior during corrections. How NIO reacts around $5 will likely set the tone for short-term sentiment. Until the stock breaks above this resistance, downside scenarios remain in play, with the chart outlining a clear range where the next major move could develop.
Saad Ullah
