Nio Extends Losing Streak Amid 'Power Day'; Critical Levels To Watch Near Term

NIO Inc. NIO shares closed lower for the sixth straight session Friday, after trading in a tight trading range for much of the session.

‘Nio Power Day' Fails to Power Up Stock: Nio held its first Nio Power Day in Shanghai Friday, wherein it delved deep into the history and core technologies of the unit. The company also announced the "Nio Power 2025," its battery swap station deployment plan.

Nio upped the target for battery swap stations for 2021 by 200 to 700. Between 2022 and 2025, the company plans to set up 600 new swap stations each year, which would take the total to over 4,000 by 2025.

The company has built 301 Nio Power Swap stations, 204 Power Charger stations and 382 destination charging stations in China.

Nio also announced it will make available Nio Power's charging and swapping system and Battey-as-a-service to the industry.

By 2025, the company targets bringing about 90% Nio users within 3 kilometers of a battery swap station, up from 29% currently.

Related Link: Nio Begins Shipping Charging Infrastructure To Norway Ahead Of September Deadline

Bears & Bulls In Balance: Nio shares, which shot up to an all-time high of $66.99 on Jan. 11, moved in a lackadaisical manner for much of the first half of the year. Since the start of June, the stock began picking up some momentum and ran up to a high of $55.13 on July 1. The stock has pulled back about 17% from this near-term peak.

Even as bulls tried to capitalize on the Nio Power Day catalyst and the recent weakness, bears came pouncing back and held the stock in a tight trading range. After falling to a low of $44.58 in the morning, the stock recovered only to be locked in the $45.28-$45.78 range for much of the afternoon session.

Critical Levels to Watch For In The Near Term: On Thursday, the stock settled close to near-term support around $45, where the downside stalled twice in June. This level should serve as key downside support for the stock. The stock has additional support around the $42.75 level.

On a potential upside, the stock could hit resistance around $48.95, a level at which the stock completed a double-top formation in late 2020.

Nio shares closed Friday's session down 0.15% at $45.53.