Nio Stock Pulls Back On Production Suspension: Technical Levels To Watch

Nio Inc. NIO shares pulled back Friday as the company announced it would suspend production for five days starting March 29 due to a semiconductor shortage.

Nio Short-Term Chart Analysis: Nio stock looks to be trading in a channel between $34.50 and $39 in the chart above.

The stock has previously been unable to break below the $34.50 level. This level held as support twice in recent chart history. This is an area of potential support in the future.

Previous chart history shows the stock struggled to cross above the $39 level. This area is where the price may struggle to get over in the short term. 

The price is trading below the 200-day moving average (blue) and above the volume-weighted average price (pink). This indicates that the stock is most likely consolidating for a period before one of these levels is broken.

Nio Daily Chart Analysis: The daily chart above shows Nio has been trading in a channel between prices of $30 and $60. A bearish trader may also see a “head and shoulders” pattern forming.

The stock previously found support near $30. This was an area that previously held as resistance, but was able to break and retest as support. This area may hold as support in the future.

The chart history shows the stock has struggled to break above the $60 level multiple times. The price has not been able to break this level and hold, indicating it is a potential resistance in the future.

Bulls would like to see the stock break through resistance with a period of consolidation before the price may have higher moves.

Bears would like to see the stock fall below support and consolidate before potentially moving lower. The price dropping below the $30 mark may confirm the head and shoulders pattern for bears.