Shares of electric vehicle makers Lordstown Motors Corp. RIDE, Tesla, Inc. TSLA and NIO Inc. NIO have all rallied, but are still below resistance levels. This could put a top on their prices, at least in the short run.
In financial markets, levels that had been support can become resistance. This happens when investors who bought their stock while it was at a support level regret their decision when the stock falls below their buy price.
Many of these investors decide to sell, but they don’t want to lose money, so they put their sell orders at the same price they bought at. If there are enough of these sell orders, what was support converts into resistance.
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The $11 level was support for Lordstown's stock. Now it's a resistance level.
Nio had clear support at the $35 level. Now it's a resistance level.
Tesla had support around the $590 level. Now the stock has run into resistance there.
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