NIO (NIO) Could Be Headed for New Highs

Electric vehicle (EV) companies had been red hot all the intention by intention of the final few months, and Chinese language EV maker NIO Restricted (NIO) will not be any exception. The stock has surged a large 1,000% since May presumably well also unbiased, and its proceed elevated could no longer be over yet.

When we ogle at NIO’s label chart, shares are in a nice uptrend, with obvious toughen and resistance phases. Lawful now, the stock is flirting with its key toughen divulge. Address a ogle:


We now possess two key toughen lines in green. One is the horizontal line marking the old excessive sooner than shares broke out. This might occasionally be a key level to glance over the subsequent few days. Then we’ve got the rising toughen line highlighting the stable uptrend channel shares are Trading in, mixed with the red resistance line on the tip.

I additionally black within the candlesticks with the colours from the relative rotation graph, or RRG. The RRG combines the relative strength of a stock to the S&P 500 with momentum to create a diversified survey on the stock. It shows that shares are likely to rotate from leading the final market, weakening because the momentum slows, within the break lagging the market, and then bettering as momentum picks support up to approach support to leading the market all over all yet again. 

Lawful now, NIO stock is weakening, as indicated by the yellow bars on the chart. Next it would enter the lagging divulge sooner than it would turn blue and originate up bettering.

Nonetheless, with a volatile stock appreciate this, it’s essential to explore on the old yellow bars that it usually turns ethical support to leading. So I am no longer reckoning on noteworthy extra of a decline from right here, given the toughen areas that are so shut to the stock label. As an alternative, I’d demand the stock to kind extra of the same over the subsequent few months – proceed ice climbing elevated.

The Bottom Line

NIO stock has been working elevated all the intention by intention of the final few months, and the label chart indicates that this could likely proceed. The two key areas of toughen are ethical below the most recent stock label, which should present it a raise within the arrival weeks. As effectively as, the RRG is displaying us that momentum has already slowed. Because it turns elevated all yet again, the stock is most frequently at new highs very fleet.

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