Nio Stock Dips Thursday: Technical Levels To Watch

Nio Inc. NIO lost ground Thursday, ending the session down 3.67% at $35.66. 

Here's a technical look at the Nio stock chart.

The stock is trading below the 50-day moving average (green)

The stock is trading above the 200-day moving average (blue), indicating bullish sentiment in the stock.

The 50-day moving average may hold as resistance in the future.

The 200-day moving average may hold as support in the future, as the stock price is nearing this indicator.

Related Link: Nio-Sinopec Partnership Launches With Power Swap Station 2.0: What EV Investors Need To Know

Key Levels To Watch For Nio: The stock looks to be forming a head-and-shoulders pattern (white).

This pattern is considered a bearish reversal pattern if it can cross below the support line.

Support is potentially near the $30 level (red), and resistance may be found near the $60 level (red).

See also: How to Buy Nio Stock

What's Next For Nio: Bullish technical traders would like to see the stock build higher lows up to resistance. A break above the line connecting the highs with consolidation may let the stock see a further push upward. 

Bearish technical traders would like to see the stock fail to hold support levels. If the stock were to fail to hold support, it may confirm the head-and-shoulders pattern They may also like to see the stock fall below the 200-day moving average for a possible further downward push.