NIO (NYSE: NIO) stock price is acting exactly as I forecasted in my previous analysis. The shares of the electric car maker have gained a bearish outlook after a breakdown below the range lows. Advanced technical analysis suggests the bears are gaining momentum.
On Thursday, NIO shares opened higher, but the sellers entered at $10.36. At press time, the stock is changing hands at $10.17, which is 0.99% above its previous close. The positive price action comes on a day when the Nasdaq 100 index is up 84 points.
In a statement on Thursday, the Chinese ministry criticized the EU probe into the Chinese EV companies. In the statement, the European Union’s scrutiny was called ‘naked protectionism’. Following this news, the Chinese EV stocks like NIO, XPeng, and Li Autos increased.
Nio stock price has seen a sharp decline in August. The shares of the EV maker are currently trading 36.7% below the yearly high. Technical analysis is pointing towards more downside in the coming weeks. US equities have shrugged off the uptick in inflation, and most analysts are expecting the rates to remain the same in next week’s FOMC meeting.
A look at the following NYSE: NIO chart shows a prolonged price action within the $8.5-$14 trading range. After a breakdown below the middle of the range, the bears are now targeting the range lows. Due to this breakdown, the NIO stock price forecast is looking very bearish.
To avoid the bearish outlook, bulls need to break above the $10.85 level. The border market sentiment would remain a key as the investors await next week’s FOMC decision. From the ongoing bullish price action in the markets, it seems that a pause in the rate hikes is already priced in.
I’ll keep posting my updated NIO analysis and my personal trade setups on Twitter, where you are welcome to follow me.
This post was last modified on Sep 14, 2023, 16:14 BST 16:14