Nio Stock Falls To Support: Technical Analysis

Nio Inc. NIO shares were trading lower Monday after the death of a passenger in a Nio vehicle.

This has prompted many to seek stricter regulations of self-driving cars in China. It has been reported that Nio is cooperating with the investigation of the accident.

Nio was down 5.53% at $38.76 at last check.

Nio Daily Chart Analysis

• Shares are trading at support in what technical traders call a pennant pattern. The pattern is close to reaching the end, where it may see a breakout and strong move in either direction.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating the stock has seen recent bearish sentiment..
• Each of these moving averages may hold as an area of resistance in the future.
• The price is being condensed between narrowing highs and lows and is trading near pattern support. The stock may need to see a bounce to continue trading within the pattern.
• The Relative Strength Index (RSI) has been falling lately and now sits at 35. This means there has been an increase in the amount of sellers in the stock.

What’s Next For Nio?

Bullish traders are looking to see the stock bounce off pattern support and start heading higher toward pattern resistance. Bulls want to see the stock cross back above the moving averages.

Bears would like to see the stock drop further and break below pattern support. If the stock can consolidate below pattern support, it could see a strong bearish push.