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Nio Inc. (NYSE: NIO) gapped higher but pared gains by Friday afternoon. The Chinese electric vehicle maker announced it achieved record-high monthly and quarterly deliveries. The company delivered 10,628 vehicles globally in September, representing an increase of 125.70% year-over-year.
Nio was down 0.45% at $35.47 at last check.
Nio Daily Chart Analysis
Shares look to be falling below pattern support in what technical traders call a pennant pattern.
The price had been getting condensed between narrowing highs and lows before the drop below support. This drop below support is a possible warning sign that further bearish moves may come if the price drops below the last low near $30.
The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
Each of these moving averages may hold as a possible area of resistance in the future.
The Relative Strength Index (RSI) has been trading sideways for the past couple of months and sits at 51. This shows a relatively equal amount of buying and selling pressure in the market.
What’s Next For Nio?
Bullish traders are looking to see the stock bounce back higher and push upward in the pattern to pattern resistance. Bulls then want to see the stock push higher and breakout above resistance to possibly see a strong breakout.
Bears want to see the stock continue to fade lower and be unable to hold at the $30 support level. If the stock began to hold this level as an area of resistance, the stock could see a strong further bearish push.
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