NIO Stock Up 5.5% On Record Q3 Delivery Numbers: Can The Earnings Boost Help Break Resistance At $8.13?

NIO Inc – ADR’s NIO stock hasn’t done too well so far this year. The stock was down more than 40% over the past year, but it began surging on Dec. 5 as delivery numbers smashed Wall Street expectations.

Positive News Boosting NIO Stock

The third-quarter highlight was Nio’s EV deliveries. Nio recorded 55,432 electric vehicle deliveries in the third quarter of 2023, up by 75.4% Y/Y and 135.7% Q/Q. This was primarily driven by strong demand for premium electric SUVs. Consequently, Nio’s vehicle revenue climbed 45.9% Y/Y and 142.3% Q/Q.

The company also agreed to acquire manufacturing equipment and assets from Anhui Jianghuai Automobile Group Corp., Ltd., a prominent state-owned automobile manufacturer in China and NIO’s partner in producing all its current vehicle models.

Related: Is Nio Racing Ahead? Surprising Q3 Results Revealed

The positive news boosted the stock, as it was up 5.5% by 11 a.m. ET.

Traders Eyeing Key Resistance Level

Traders would be eyeing a key resistance level for any indication of a trend reversal.

In the medium term, Nio stock broke through the falling trend’s ceiling, pointing to a slower initial rate of decline. Traders would expect a continued fall in the long term, however, at a weaker rate of decline than before.

At $8.13, the stock would be testing resistance. This might cause a negative response, but an upward break above $8.13 could indicate a positive signal.

Moving averages indicate a continued decline with the Death Cross visible mid-October and failing to reverse its downward trend.

In the near run, a positive volume balance could support the stock. This indicates investor “FOMO” associated with the stock. The stock price tends to rise on high volume and reacts back on low volume. So, investors are worried about not getting into the stock when something happens and are also hesitant to sell on falling prices.

Also, the positive divergence between the RSI and the price suggests that an upward reaction may occur.

NIO Price Action: Nio stock was trading at $7.60 at the time of publication on Tuesday.

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Photo: Nio EC7 via Nio