Nio Inc. (NYSE:NIO) shares were trading higher Thursday alongside many other electric vehicle stocks. The Chinese automaker is expected to release its December and fourth-quarter delivery figures this weekend.
Nio was up 11.61% at $31.52 midday Thursday.
Nio Daily Chart Analysis
- Shares have fallen out of the bottom of a pennant pattern and have been unable to recover the support line. This shows the stock could see a strong bearish move if above average volume pushes into the stock on a day it trades lower.
- The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
- The Relative Strength Index (RSI) has been pushing higher the past couple of weeks and now sits at 43. This shows that the stock has seen more buyers entering the market, but there are still more sellers in the stock overall.
What’s Next For Nio?
Nio shares are hanging below the pennant pattern, showing the stock was not yet ready to see a breakout and a push higher. Hanging below the support level gives bears the chance to take hold of the stock and push it lower.
Bears would like to see the stock hold below the moving averages and begin to form lower highs. Bulls are looking for the stock to recover the pattern support and trade within the pattern once again, eventually looking for a break over resistance.
