NIO stock price (NYSE: NIO) corrected 34% (approx.) from its recent swing high at $16.19. It formed a bearish pattern and eroded a big portion of its market capitalization.
NIO stock price is trading near its crucial support of $10.00 and buyers are trying their best to rebound. The prices seem to be stuck in the narrow range consolidation and showing signs of base formation.
Nio Inc., ADR performed well in June and July which grabbed the attention of the long-term investors. Buyers succeeded in breaking the 50-day and 200-day EMA which further boosted the confidence of long-term investors.
At the beginning of August, the positive momentum in the NIO stock had taken a halt near $16.19. Later, prices witnessed profit booking and it began to decline by forming lower lows.
In the middle of August, Nio stock slipped below the 50 and 200-day EMA. It showcases that the trend has again reversed in a downward direction. However, the buyers near $10.00 showed a minor bounce and are trying to regain the confidence of long-term investors.
NIO stock price closed the previous session at $10.58 with an intraday decline of -2.13%. The market capitalization stands at $17.86 Billion.
Can Nio Stock Price defend $10 in Sep?
NIO stock price formed a bullish hammer candle near $10.00 and displayed the presence of buyers. It closed the previous session at $10.58 with an intraday decline of -2.13%. The market capitalization stands at $17.86 Billion.
Nio Inc., ADR released the quarterly earnings on August 29, 2023. It reported an EPS of -0.452 and revenue of $1.263 Billion. The company missed the EPS estimate by 10.83% and revenue estimate by 4.29%.
Due to that, Nio share price reacted negatively and sellers attempted to break the $10 support. The breakdown failed and buyers came forward to push the prices higher.
Nio Inc. ADR Stock Price is Stuck in Range
Nio Inc., ADR stock price formed a bullish hammer candle on a weekly time frame. But buyers failed to give the follow-up momentum and prices remained in a range.
The possibility of upward range expansion in Nio share will increase when buyers are able to regain the EMAs.
Till then it is expected to continue the consolidation. On the other hand, if the Nio share price dropped below $9.39 then another round of sell-off might be visible.
Conclusion
NIO stock price (NYSE: NIO) corrected 34% from its swing high but still no signs of recovery are visible. Nio Inc., ADR stock seems to be mildly bearish and the possibility of the $10.00 breakdown is high.
Technical levels
- Resistance levels: $12.41 and $16.19
- Support levels: $9.39 and $7.00
