NIO Inc Falls Hard! All Targets Hit in 15-Minute Short TradeTechnical Analysis: NIO Inc – 15-Minute Timeframe (Short Trade)
NIO Inc presented a strong short trade opportunity, with an entry at 6.76. The price has reached all profit targets, confirming the strength of the bearish trend.
Key Levels
Entry: 6.76 – The short trade was initiated at this level after a clear bearish signal.
Stop-Loss (SL): 6.83 – Positioned above resistance to guard against potential reversals.
Take Profit 1 (TP1): 6.68 – The first target was reached, confirming the initial bearish momentum.
Take Profit 2 (TP2): 6.54 – Continued downside pressure pushed the price to this level.
Take Profit 3 (TP3): 6.41 – The bearish momentum carried the price to this target.
Take Profit 4 (TP4): 6.32 – The final profit target, marking a successful and complete trade.
Trend Analysis
The price remained well below the Risological Dotted trendline, affirming the strength of the bearish trend. The steady selling pressure helped achieve all targets, indicating strong downward momentum in favor of sellers.
The short trade on NIO Inc has concluded successfully, hitting all targets, with the final target at 6.32. The clear downtrend and guidance from the Risological Dotted trendline ensured a profitable trade.
Niosignal
Nio’s Stock Soars 16% on $1.9 Billion Investment Deal Nio Inc. (NYSE: NYSE:NIO ), the Chinese electric vehicle (EV) giant, has once again made headlines as its U.S.-listed stock surged to double-digit gains, spurred by a significant investment announcement and renewed optimism in China's stock market. The stock climbed over 15% in premarket trading on Monday, marking its biggest jump in nearly five months. In this article, we’ll explore both the technical and fundamental drivers behind this surge, while also examining whether investors should proceed with optimism or caution.
The Strategic $1.9 Billion Investment
At the heart of Nio's stock rally is the news of a cash injection totaling RMB13.3 billion ($1.9 billion) from existing shareholders and strategic investors. This includes a mix of Nio's own cash and funds from key stakeholders such as Hefei Jianheng New Energy Automobile Investment Fund Partnership, Anhui Provincial Emerging Industry Investment Co., and CS Capital Co. These investors will contribute RMB3.3 billion in cash for new shares in Nio Holding Co., commonly known as Nio China. Meanwhile, Nio Inc. (NYSE: NYSE:NIO ) will invest an additional RMB10 billion to bolster its China unit, although this will reduce its ownership stake to 88.3% from 92.1%.
This strategic investment is a major lifeline for Nio (NYSE: NYSE:NIO ), which has been burning through cash and reported a Q2 2024 loss of RMB4.5 billion. Despite these losses, the company posted quarterly sales of RMB17.5 billion, surpassing expectations even amidst weakening demand in the EV market. Morgan Stanley analysts have pointed out that this new capital infusion will ease concerns around Nio’s liquidity, enhancing its near-term cash flow and solidifying its balance sheet.
Nio’s ability to attract investment from strategic players familiar with the Chinese EV landscape, such as Hefei Jianheng and Anhui Provincial Emerging Industry Investment, is notable. These entities were part of a $1 billion investment deal in 2020 that played a key role in alleviating cash flow concerns at the time. Given the fierce competition in China’s EV sector and the pressures from overseas tariffs, this cash injection provides Nio with the necessary fuel to continue its R&D investments in battery-swapping technology, charging infrastructure, and next-generation EV technology.
Nio (NYSE: NYSE:NIO ) has also been proactive in securing additional future funding. The company retains the option to invest up to RMB20 billion in Nio China by the end of 2025, further demonstrating its commitment to maintaining a dominant position in the rapidly evolving EV market.
Technical Analysis
From a technical perspective, Nio’s recent price action has been nothing short of impressive. Monday’s 16% premarket surge catapulted the stock to new highs, defying expectations that the stock had already entered overbought territory. As of Friday, Nio’s Relative Strength Index (RSI) stood at 70.85, a level that typically signals overbought conditions. Despite this, the stock continued to rise sharply following the investment news, raising eyebrows among investors.
Nio (NYSE: NYSE:NIO ) has been trading in oversold territory for over five months, with its stock price battered by a mix of macroeconomic headwinds, slowing demand, and stiff competition within the EV space. Yet, the stock’s resurgence is now riding high on renewed optimism, especially given the company’s strengthened balance sheet and the positive reception of its strategic partnerships.
Nio’s key moving averages reflect a continued bullish trend, with the stock trading above both its 50-day and 200-day moving averages. The surge in price has broken through several resistance levels, creating a fresh wave of momentum. However, investors should remain cautious given the stock’s RSI and the broader context of the market.
While Nio (NYSE: NYSE:NIO ) is currently riding high, key indexes like the NASDAQ, S&P 500, Dow Jones, and Russell 2000 were not faring well in early Monday trading. This disconnect between Nio’s performance and broader market trends could signal that a correction may be on the horizon. The stock's support pivot at $5.64 remains a critical level to watch, and any negative developments—such as missed earnings or macroeconomic shifts—could see Nio retreat toward this level.
Industry Outlook: China’s EV Market and Nio’s Competitive Edge
Nio (NYSE: NYSE:NIO ) has consistently focused on differentiating itself within China’s highly competitive EV market by investing in advanced technologies like battery swapping and autonomous driving. The company’s robust R&D spending, paired with its strategic partnerships, places it in a strong position to benefit from China’s continued push towards electrification.
China remains one of the world’s largest EV markets, with significant government support driving growth across the sector. However, Nio faces challenges from both domestic competitors, such as BYD and XPeng, and international giants like Tesla. The intense competition and shifting consumer preferences mean that Nio must continue innovating to retain its market share.
Nio’s long-term prospects are further bolstered by its multi-brand strategy and ambitions to expand beyond China. The company has set its sights on penetrating broader markets and leveraging its premium EV offerings through brands like ONVO. This diversified approach could be instrumental in driving sustainable growth, even as competition intensifies.
Conclusion: A Balanced Opportunity with Risks to Consider
Nio’s recent investment announcement and subsequent stock surge have given investors a reason to cheer, but the road ahead is not without risks. The company has taken significant steps to improve its balance sheet and strengthen its competitive position in the Chinese EV market. The strategic investments from key players underscore Nio’s leadership in the sector and provide much-needed cash for its ambitious growth plans.
On the technical side, while the stock’s recent surge has been impressive, the overbought conditions reflected by its RSI suggest that a pullback could be imminent. Investors should remain vigilant, especially in light of broader market uncertainty.
For long-term investors, Nio (NYSE: NYSE:NIO ) offers a compelling growth story, backed by innovation, strategic partnerships, and strong government support. However, in the short term, it may be wise to wait for a potential cooldown before making any new investments.
Nio’s journey in the EV space is far from over, and as it navigates both challenges and opportunities, it remains one of the most intriguing players to watch in the global electric vehicle market.
NIO Surge 12% On Q2 2024 Financial ResultsKey Highlights
- Nio cuts losses while setting a new record for vehicle deliveries in Q2.
- Deliveries jumped 143.9% year-over-year, and vehicle sales surged 118.2%.
- Nio’s Q3 guidance beats forecasts, showcasing resilience in a competitive EV market.
Overview
Nio, one of China’s leading electric vehicle (EV) manufacturers, continues to demonstrate remarkable resilience in the face of market challenges. The company set a new record for vehicle deliveries in Q2, with 57,373 units delivered—a 143.9% year-over-year increase. Vehicle sales grew by 118.2% to 15.68 billion yuan, showcasing the company’s ability to scale production and meet growing consumer demand.
Despite ongoing industry-wide pressures, Nio ( NYSE:NIO ) managed to reduce its Q2 losses to 5.05 billion yuan ($694.4 million), a 16.7% improvement from the previous year. The company’s gross margin expanded significantly from 1.0% a year ago to 9.7%, driven by vehicle margin improvements, which nearly doubled to 12.2%. This indicates a stronger control over production costs and a focus on high-margin segments, especially in premium electric vehicles priced above 300,000 yuan ($42,327), where Nio commands over 40% market share.
Forward Outlook and Strategic Positioning
Founder and CEO William Bin Li emphasized Nio’s strong market positioning, highlighting their expectation for Q3 deliveries to reach another all-time high of between 61,000 to 63,000 units. This bullish outlook shows Nio’s continuous expansion efforts, including the launch of new models and enhancements in battery technology. The company’s projected Q3 revenue range of 19.11 billion yuan to 19.67 billion yuan further underlines its growth trajectory, surpassing analysts’ expectations.
With a robust cash position of 41.6 billion yuan ($5.7 billion) as of June 30, 2024, Nio is well-equipped to invest in research, development, and further scaling its production capabilities. This financial stability provides a buffer against potential market volatility, including ongoing tariff and regulatory pressures from global markets.
Technical Analysis
From a technical standpoint, Nio's stock (NYSE: NYSE:NIO ) has shown encouraging signs of recovery after a prolonged decline. The stock recently traded up 3.30% at $4.38 premarket, rebounding slightly from its 50% year-to-date drop. The recent surge in Nio’s ADRs suggests growing investor confidence, driven by the company’s strong Q2 performance and optimistic Q3 outlook.
The stock price is testing its 50-day moving average, a critical resistance level that, if breached, could signal a bullish reversal. With momentum indicators like the Relative Strength Index (RSI) showing a climb from oversold territory, Nio’s shares could be positioned for further upside if delivery and revenue growth trends continue.
Moreover, the volume of call options has increased, suggesting that traders are positioning for upward movement in the stock, particularly as Nio continues to solidify its market share in the premium EV segment. If the stock manages to break above the psychological $5.00 mark, it could trigger additional buying interest, supported by improved sentiment around China’s stimulus measures and consumer demand recovery.
Conclusion
Nio’s impressive Q2 performance, coupled with a strong forward outlook, positions the company as a formidable player in the global EV market. While broader industry challenges persist, Nio’s ability to cut losses, achieve record deliveries, and expand margins reflects sound management and strategic foresight. As Nio continues to navigate market complexities and execute its growth strategy, investors may find renewed optimism in the company’s long-term potential, bolstered by both fundamental strength and technical recovery signals.
Nio’s journey may still face bumps along the road, but its recent achievements suggest that the company is on track to emerge stronger, setting a solid foundation for future success in the rapidly evolving EV landscape.
NIO's Side movements are getting close to a break Out/Down !Either we are consolidating, for Wave B then C down or this is some how could be counted as a base for Wave 3 trying to establish a ballistic move up. I have analyzed it extensively mentioning all probable bullish/Bearish out comes with statistics and probabilities. In a nut shell seasonality is favoring a bearish move Vs fundamentals, car production, that are favoring a bullish move. It looks very clear that we have completed a Macros ABC down from ATH. Now this is part, more probably, of a bullish macro move with ups/downs . Risk down is, if you are bullish, (-30%) according to probabilities Risk up if you are bearish is +200% according to probabilities.
NIO BUYHi, based on my analysis of NEO stock, there is a good buying opportunity. The stock appears to be in a positive state. The stock returned to a very strong area of strong support at level 10. In which a green candle with a tail was formed, indicating a strong entry of buyers, as well as a retest of the downtrend. The presence of the 200 moving average, which in turn constitutes another support. Good luck everyone
Is this the turning point for NIO? NIO earnings are this Friday 9th June
- Positive Divergence
- OBV breaking upward potential
- As per prior post, we are in half way into the long
term buy zone. Long term accumulation can
commence for long term investors.
- Price could drop as low as $6 however there is no
guarantee, and with the positive divergence there
is a trade to be considered to the upside with
earnings on the agenda this Friday.
- Stop Loss at June 1st low somewhere between
$7.00 - $7.42 depending on risk tolerance.
NIO Options Ahead of EarningsIf you haven`t bought NIO here:
Then Analyzing the options chain of NIO prior to the earnings report this week,
I would consider purchasing the 8usd strike price Calls with
an expiration date of 2023-7-21,
for a premium of approximately $0.65.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
$NIO - 3.88 PRICE TARGET - Dangerous Bearish F flag breakdown!Nio is in a dangerous zone, it recently broke down its bearish f flag. the stock has been in a downward channel with many bearish flags continuing to play out, a new leg has been created. the target now is the leg of the previous leg of the previous flag. there is also a support from 2019 which also correlated to the price target of $3.88. continue to short from here.
NIO Inc. Options Ahead of EarningsIf you haven`t bought the $15 strike puts when i wrote you this article, which are trading now at $3.50 from $1.14:
Then you should know that looking at the NIO Inc. options chain ahead of earnings, i would buy the $12.5 strike price Calls with
2022-11-18 expiration date for about
$0.38 premium.
If the options turn out to be profitable Before the earnings release, i would sell at least 50%.
Looking forward to read your opinion about it.
NIO Dip $ Target we need to hold above our current support above the 8.95$ to confirm the reversal and breaking first the resistant at 9.33$, then go towards the 10.50$ resistant which will be a turning point for nio to confirm the reversal and enter in to bullish trend again.
however if we didn't hold above the 8$ support , we going towards the bottom for this year above the 5.60$+.
NIO FALLING WEDGE (VERY BULLISH) LONG TERM IDEA $$$As shown on the weekly chart, NIO has been creating a falling wedge from its peak since a year ago, and I believe it is nearing maturity now, with the consistent level of support close below the resistance, indicating a significant accumulation zone before NIO breaks open. This is a long-term investment that will be extremely profitable for those who would like some good returns, however only buy once it has broken open and shown a positive price movement.
NIO: Deliveries up YOY!!NIO
Short Term - We look to Buy at 16.34 (stop at 11.63)
Although the bears are in control, the stalling negative momentum indicates a turnaround is possible. They reported a 11% year on year rise in deliveries which is good fundamentally. The trend of higher lows is located at 14.00. This is positive for sentiment and the uptrend has potential to return. Further upside is expected although we prefer to buy into dips close to the 16.00 level.
Our profit targets will be 27.48 and 32.00
Resistance: 24.00 / 34.00 / 45.00
Support: 16.00 / 12.00 / 5.00
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NIO Buy SetupNYSE:NIO Signal
Entry - $10
Target - $27
Invalidation - $2
Risk to reward ratio - 2.13
Technical confirmations
Gap between $9 and $11 where unfilled orders have to filled.
Price once rejected $10 level and then broke it. We think that $10 level could act as a potential support.
We have a 0.886 Fib retracement level at $9
Fundamental confirmations
Why should price reach Entry level?
Because of the lockdown in Shanghai businesses are getting logistics problems.
COVID-19 lockdown and China political situation with Russia influence foreign investors to sell their stocks.
NYSE:NIO is in the list of Chinese YTD share performance sectors that are vulnerable to COVID lockdowns
Why should price reach Target level?
Debt to equity ratio: <1 (Stable company)
Has a stable cashflow
According to Nasdaq, CNBC long-term price goal - $33
Nio Finally Bullish? NIO
Short Term - We look to Buy a break of 23.79 (stop at 21.92)
We look for gains to be extended today. Price action has broken from the previous formation. The reaction higher is positive and highlights a clear reversal. Short term oscillators have turned positive.
Our profit targets will be 28.11 and 32.51
Resistance: 28.00 / 34.00 / 45.00
Support: 23.00 / 20.00 / 13.00
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NIO Breakout Alert $the moment we clear our ascending line, we will see a bearish trend reversal , and have a massive test around the 29$, before we continue the trend up, before that we should hold above our box, and never go below to confirm the bullish momentum and breaking our ascending line, and doing higher lows, by bouncing above our support box.
discount for the best trading chart that I personally use
www.tradingview.com
NIO Price TargetPrice target for NIO is $21.
All the Chinese stocks are primed for a strong recovery after China`s top administrative authority said it would work to stabilize the stock market and boost economic growth!
Traders are expecting the Chinese government would support the stock market like the FED did in the US.