Nio Stock Price Signals Upside Breakout As Key Fundamentals Align

Summary:
• Nio stock price has been sending mixed signals in the last third of the year. But there's strong evidence to bet on the upside.

Nio stock price inched up in the pre-market session on Wednesday, signaling potential recovery from the sharp drop recorded the day before. Nio (NYSE: NIO) traded at $4.78, up by 0.2% on the daily chart as of this writing. The stock skyrocketed on Monday, closing the session at +12.36% following news of a looser monetary policy and stimulus expenditure by the Chinese government in 2025.

Nio stock price at an inflection point

Despite news of more cash injection by the Chinese government into its troubled economy, investors remain concerned over Nio’s ability to grow its sales. China is the EV maker’s largest market, and its troubled economy has subdued the sales figures.

That has seen the company make strategic moves, with the launch of two cheaper models- the Onvo L60, which hit the markets in late September, and the Firefly, which will be available starting early 2025.

Also, Nio opened its first sales outpost in the Middle East and North Africa (MENA) region in late November, seeking to diversify outside China and Europe. However, these measures could take some time to gain traction.

These recent moves puts Nio at a potential turning point in as far as its sales goes. With the stock down by 46% year-to-date, an impending uptick in the company’s fundamentals positions the current Nio stock price at a good entry point for investors. After recording successive 20k+ unit sales for seven months for the first time in its history, affirms the bullish outlook.

Nio stock price prediction

Pivot: Nio stock price pivots at $4.76 and the upside will prevail if the buyers keep the action above that level. Alternatively, a break below that level will signal the onset of downward momentum.

Reistance: Imediate resistance is likely to be at $4.86. If the buyers flip that level into a support, the momentum could target the next hurdle at $4.95.

Support: The stock will likely find initial support at $4.65. However, continued control by the sellers at that level will break below that level and render the upside narrative invalid. Also, that could extend the downward action to test $4.60.