Nio Share Price Trades Lower Despite Doubling EV Sales

Summary:

EV car maker Nio reports a 125% increase in vehicle deliveries year-over-year in July. However, concerns over China's manufacturing data lead to selling.

Nio share price watchers have so far been disapppointed with the day’s price moves. Expectations of a bullish start to the day were initially heightened when the company reportes a 124.5% increase in deliveries in July, year-over-year.

A total of 7,931 vehicles were delivered in July, a figure which cements the strong numbers posted by Chinese EV companies this Tuesday. Earlier, Xpeng Inc and Li Auto Ll had reported a tripling of electric vehicle sales, providing a huge filip to the Chinese auto industry. However, Tesla continues to dominate the EV market in China.

Nio share price is down 3.21% as of writing probably because investors remain concerned about what the latest downbeat Chinese manufacturing data hold for this market.

Nio Share Price Outlook

Nio share price is challenging the 46.07 resistance, as it seeks to initiate a breakout to complete the evolution of the bullish flag. However, any upside move needs to take out the neckline of the triple bottom at 47.58 as well. Success opens the gateway for buyers to aim to drive the Nio share price towards 52.04 and potentially 54.40, in pursuit of the completed move. A further ascent brings 56.13 into the mix.

On the flip side, rejection and a pullback from 46.07 allows sellers to aim for 43.14 within the consolidation area. 41.31 and 39.33 are additional downside targets that need to give way for price to target the flag’s lower edge at 35.91. A disintegration of this border invalidates the flag.