Nio stock price has struggled for months in the markets. However, the last trading sessions have seen the price rise by more than 56 percent, indicating a resurgence of the stock. One of the reasons that the share prices of Nio stock have been on a decline was the fear that the company would get delisted in the US. This would have spelt doom for investors and cause a meltdown in the markets.
However, recent reports indicate that the Securities and Exchange Commission (SEC) has offered relief to the company. After rumours started spreading last week, the stock was in danger of delisting due to failure to comply with the Holding Foreign Companies Accountable Act (HFCAA).
Nio’s stock price has risen by over 10 percent in today’s trading session. The trading session also marks the fourth consecutive Nio stock price has risen, gaining 56 percent. This is after months of an aggressive bearish trend that started on November 24, 2021, and saw the prices of the stock decrease by more than 60 percent before the current recovery.
Looking at the daily chart below, the Nio stock price has been trading within support and resistance levels of $13 and $26, respectively. The $13 stock price is also its lowest yearly low. And after failing to break the support level to the downside a few days ago, there is a high likelihood that the prices have entered a bullish trend.
However, the Nio stock price has also touched and broken the upper trendline of a descending channel, indicating the current bullish move may be a reversal. Therefore, my Nio stock price forecast is the prices are likely to hit the $26 resistance level again. This analysis is confirmed by the RSI indicator, which shows that the current push to the upside has a lot of momentum. However, if the prices return to the descending channel, my trade analysis will be invalidated. It also means that the prices are likely not to hit $26 in the foreseeable future.
This post was last modified on Mar 21, 2022, 12:15 GMT 12:15