Nio Stock Shows Some Strength After Solid Delivery Numbers

Nio Inc. NIO shares are trading higher Monday after the company announced its December, fourth-quarter and full-year delivery numbers. Nio announced it delivered 10,489 vehicles in December, representing an increase of 49.7% year-over-year. The stock appears to be trying to reclaim a support level once again.

Nio was up 3.91% at $32.93 late Monday morning. 

Nio Daily Chart Analysis

• Shares are climbing back higher toward support in what traders call a pennant pattern. The stock recently fell below the support level and now looks to be trying to recover and cross back above the level once again.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has shot higher the past few days and now sits at 49. This shows a large increase in buyers throughout the past few days, and the buying pressure has now almost equaled the selling pressure. The increase in buyers shows the stock may be ready to recover support and continue to head toward resistance.

What’s Next For Nio?

Nio has almost recovered above the support level, showing bullish strength as it climbs once again. Breaking above the support level once again is a very bullish sign and will show bulls are trying to take back control of the stock.

Bulls are looking to see the cross back above support and then a cross above the moving averages once again. Bears are looking to see the stock be unable to cross back above support and continue to fall lower.