- 1 NIO stock price bounces back after marking its 52-week low.
- 2 The downtrend can be attributed to macroeconomic factors.
- 3 NIO stock price rose by 3.03% intraday.
NIO stock price marks retracement after reaching its 52-week low, and hints at a stronger price reversal. NIO Inc. is an electric vehicle (EV) company that engages in the design, manufacture, and sale of EVs Since it is headquartered in Jiading, China, recent ravel around China EV battery growth plans, has casted a shadow over its prices.
NIO’s market reach is growing. According to a Reuters report, Chinese President Xi Jinping showed concerns about a monopoly in the EV battery market. Industry executives and regulators took his words as a warning to be ready to ease expansion in order to sustain growth rates. This oversight risk added to China EV battery growth plans have resisted the EV industry rally.
NIO looking for Alts?
NIO and other EV manufacturers are allegedly looking for alternative EV battery suppliers, after Xi expressed his market structure concerns. Along the same lines, the Lithium-ion battery industry is witnessing inflation due to high demand of EV.
Electric vehicle battery technology is presently dependent on Lithium, which is a scarce resource. The batteries are the most expensive component of conventional electric cars today. The search for alternatives has not yielded any cost-competitive results yet.
NIO Stock Price Action
Nio stock price retraced after taking support at $8.00. It recently marked its 52-week low, and after bouncing back, ended its prolonged bearish momentum. The trading volume displays a highly volatile market due to EV being in the headlines. The market exhibits strong bearish signals which seem to fade after NIO reacts to Xi’s words.
Nio stock price escaped the declining streak and after taking support, rises marking a possible rally. The Fib retracement levels show Nio share price to rally till $22, passing through all initial levels. If it can crack out of the resistance at $22, it may set an aim higher than $25. The $25 target may be for a longer term, but once achieved may act as a strong support.
The RSI shows diminishing seller dominance. It rises from the lowest range to reach near the half line, and intact a neutral market before the bull run. The MACD nears a convergence to end the negative cross and records descending seller bars. Indicators suggest it might be the start of a bullish trend, but their strength will be defined as NIO stock price moves further.
Nio stock price hints at a price reversal and could aim for price levels beyond $25. The market currently faces volatility as the Chinese President expresses concerns over a growing monopoly in the EV battery industry. Nio share price action shows a possibility of bulls taking over the market shortly. The holders of NIO can trust the support near $8.00 and track the rally through retracement levels.
Support levels: $8.00 and $6.00
Resistance levels: $22.00 and $24.45
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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