Peter Smith
● Market analyst Cantonese Cat recently highlighted an encouraging technical shift for NIO Inc. (NYSE: NIO): the stock has flipped its 20-month simple moving average from resistance into support. "After $NIO monthly flipped the 20-month SMA from resistance to support recently, it can go all the way back down to $5, and it's still a bullish chart," the analyst noted, suggesting a potential dip could offer an attractive entry.
● NIO, which peaked above $60 in 2021, has spent the last two years grinding lower. But recent monthly candles show a decisive break above the 20-month SMA near $6, followed by a successful retest—a classic reversal signal. Still, with October showing an 11% decline and Bollinger Bands indicating room for downside, short-term volatility remains a factor. The key point: a drop to $5 wouldn't necessarily break the bullish case.
● For some traders, a pullback to $5 would act as a technical reset, cooling off momentum before any sustained rally. Others see holding above the 20-month SMA as evidence that bigger players may already be building positions.
● Beyond the charts, NIO's performance is being watched as a bellwether for China's EV sector, especially as policy support strengthens and supply issues ease. If the technical setup holds, it could help restore confidence across the broader electric vehicle space.
Peter Smith
