Nio Stock Holds Key Support, But Flashes Bearish Signal

Nio Inc NIO last Friday presented its battery swap station deployment plan, called “Nio Power Plan 2025,” at its battery day event. The system, which will run on Nio Power Cloud, consists of the Nio Power Charger, Nio Power Swap, Power Mobile and Nio Power Home. The company plans to have more than 4,000 charting stations worldwide by 2025 with 1000 operating outside China.

The news didn’t do much for Nio’s stock and for the last three trading days Nio has been stuck in a tight range between $44.60 and $47.

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The Nio Chart: Nio’s stock has retraced about 18% from when it made a new high of $55.13 on July 1. It has been holding above a key support level around the $45 mark and bullish traders will want to see that continue.

There is a possibility Nio’s stock has created a bear flag pattern on the daily chart --with the pole created between July 1 and 8 and the flag between July 8 and Tuesday. If the pattern is recognized the measured move, the length of the pole, indicates Nio’s stock could drop about 22% down from the top of the flag. This could pull Nio down to the $37 area.

Nio’s stock is trading slightly below both the eight-day and 21-day exponential moving averages (EMAs) but the eight-day EMA is trending above the 21-day EMA, which indicates indecision. Nio’s stock is also trading about 4% below the 200-day simple moving average which indicates overall sentiment in the stock is bearish.

Nio has support at $45 and $40 while it has resistance at $49.84 and $54.56.

NIO Price Action: Nio trades around $45.25 at publciaiton time.