• Since the break below support in what traders call a pennant pattern, the stock has been on a steady downward trend. The pennant pattern typically shows highs and lows condensing together at a similar rate. When the price can break above resistance or below support in the pattern, the price will typically continue to move in the same direction as the break.
• The stock trades below both the 50-day moving average (green) and the 200-day moving average (blue). This indicates bearish sentiment, and each of these moving averages may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been slowly trending lower since the break below support and now sits at 35. This RSI is nearing the oversold region and if able to reach this area and hold in it, the stock could see a strong bearish move in the future.

Nio has been in a steady period of downward movement and hasn’t shown any signs of slowing down yet. As long as the stock continues to form lower highs it will continue to push lower and stay on the bearish trend. Bearish traders are in control of the stock and would like it to hold below the moving averages and keep forming lower highs for the bearish trend to continue. Bullish traders are looking to see a bounce and want the stock to begin to form higher lows. Bulls need the stock to break the trend of lower highs in order to see a possible reversal happen.