Nio Stabilizes After a Year of LossesNio had a massive run during the worst of the pandemic, followed by a year of pullbacks. Now the electric-car maker could be stabilizing at a key level.
First consider the price area near $28. NIO consolidated around that level in October 2020 before proceeding to more than double. Now that zone is providing support.
Second, consider the high-volume surge on December 30 as yearend buyers stepped in. Notice the slightly higher lows on either side of that candle, which produced an inverse head and shoulders.
Next, the December low was near a 61.8 percent retracement of the original rally in 2020.
Finally, the new year has seen a rotation toward global stocks and weak-dollar plays as the market accepts the hawkish Fed. That shift could also help NIO.
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