What's Next For Nio Stock?

Nio Inc. NIO shares were trading higher Friday following reports suggesting the company said it would be able to double annual production capacity at its Hefei facility in 2022.

Nio is producing at a capacity of 120,000 units per year and plans to reach a capacity of 240,000 units per year after the upgrade has been completed.

Nio is up 3.4% at $37.52 at publication time.

See Also: Why Nio Shares Are Rising

Nio Daily Chart Analysis

• Shares fell below pattern support in a pennant pattern and may find support near a previous area of horizontal support.
• The price was getting pinched between narrowing resistance and support before it fell below support. Now the stock may find support near the $30 level as this was a previous low where the stock made a bounce.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating recent sentiment in the stock has been bearish.
• Each of these moving averages may hold as a possible area of resistance in the future. The stock looks to be attempting to break above the 50-day moving average today.
• The Relative Strength Index (RSI) has been climbing the past couple of days and now sits at 57. This shows that the buying pressure now outweighs the selling pressure.

What’s Next For Nio?

Bullish traders would like to see a bounce at support and for the stock to begin to make higher lows. Bulls are then looking for the stock to be able to cross above the moving averages to turn sentiment more bullish.

Bears would like to see the stock continue to fade lower and eventually break below the $30 level. If this level began to hold as resistance, the stock could see a strong bearish push in the future.