Buy, Sell, OR Hold NIO after Q2 Earnings?
NIO stock price fell significantly after giving a discouraging Q2 23 earnings not standing on the expectations of the market. The company reported a revenue of 1.25 Billion with a negative income of -872.06 Million and a profit margin of -69.79%.
NIO stock price faced rejection from the upper levels and kept on falling by forming lower low patterns. It shows that the trend is in a downward direction and there is bears continued dominance on a higher level. It formed a bearish pattern and eroded the gains generated in the month. NIO stock price has gone far away from the key moving averages. So, the pullback rally may trigger from the lower levels.
Nio Inc. (NYSE: NIO) stock fell for 4 consecutive weeks. It returned back to its previous lower level. The next few sessions will be interesting to see how the prices react near the support. The technical analysis suggests prices look oversold and a relief rally may trigger any time from the lower levels.
Nio share price is in a correction phase but trading near its crucial support of $10.00. If formed, a bearish candle indicates sellers are active and will try their best to down the price.
NIO price closed the previous session at $10.27 with a decline of -3.75%. If the buyers succeed in defending the $10 support, then the possibility of a bounce back will increase. However, if the sell-off continues and NIO stock drops below $10, then lower levels will come.
Buyers tried multiple times to break the bear momentum and expand upward. However, due to the strong presence of sellers, prices faced rejection. It shows sellers are still active on higher levels.
Technical Analysis: Will NIO Stock Give Breakdown?
NIO price is trading below the downward-sloping 50-day, 100-day, and 200-day EMA showcasing a downtrend. However, the NIO price has gone far away from the EMAs. Due to this buyers might come forward to push the prices higher. Sadly, the attempt was not successful and prices faced sharp rejection from the supply zone of $16.
Nevertheless, if more selling volume counts up, then the price might conquer supporting SMA’s by making lower highs and lows. Accordingly, the NIO price is predicted to push downwards offering bearish statements over the daily time frame chart.
The current value of RSI is 36.13 points. The 14 SMA is above the median line at 40.75 points which indicates that the NIO stock is bearish. The MACD generated a negative crossover and the histogram is also red indicating bearishness. The RSI denotes weakness but is near the oversold territory.
Summary
Nio Inc. (NYSE: NIO) technical oscillators also support the bearish trend. The MACD, RSI, and EMA are emphasizing negative signs and imply that the downtrend may continue in the NIO stock price. NIO price action suggests that the investors and traders are bearish on the 1-D time frame. The price action reflects a bearish perspective at the moment.
Technical Levels
- Support Levels: The most immediate support levels for the NIO stock price are $9.50 and $7.04.
- Resistance Levels: The most immediate resistance levels for the NIO stock price are $17.73 and $16.15.
Disclaimer
The analysis provided in this article is for informational and educational purposes only. Do not rely on this information as financial, investment, or trading advice. Investing and trading in stock involves risk. Please assess your situation and risk tolerance before making any investment decisions.
