Nio, Inc (NYSE:NIO) was soaring over 17% higher intraday on Monday in unison with Tesla, Inc (NASDAQ:TSLA), which was shooting up about 10%.
The rally gained steam after Nio shared images of ET5 sedan prototypes rolling off its production line in Hefei, China.
The ET5 — the second sedan produced by the company — will be available in China this fall but could hit other markets in 2022 as Nio continues its expansion into new countries.
See Also: Why Nio, Workhorse And Nikola Shares Are Rising
The Nio Chart: On Jan. 26 and Jan. 27, Nio filled a lower gap that had been left behind on Oct. 14, 2020. Gaps on charts fill about 90% of the time, so it was likely the Nio would eventually fall down to fill that gap. Bulls may now feel more confident going forward.
- On Monday, the stock was heading up toward a higher gap between the $25.98 to $27.22 range, which is also likely to fill.
- If Nio closes the day near its high-of-day price, it will print a bullish kicker candlestick on the daily chart. The candlestick indicates Nio is likely to trade higher again on Tuesday.
- Monday’s price action allowed Nio to regain the eight-day exponential moving average as support, which is bullish. If the stock is able to rise up and fill the gap over the coming days, Nio will also regain the 21-day EMA, which will eventually cause the eight-day EMA to cross above the 21-day, which would give bulls more confidence going forward into long-term positions.
- The stock has not yet confirmed a trend change and is in a downtrend. If Nio is eventually able to print a higher low above Friday’s low-of-day price at the $19.31 level, an uptrend will be confirmed.
- Nio has resistance above at $27.39 and $30.71 and support below at $23.98 and $21.77.
Photo courtesy of Nio.
