Nio Inc. (NYSE:NIO) shares are trading lower Friday in sympathy with the electric vehicles sector.
Many other popular electric vehicle stocks are dropping lower Friday such as Xpeng Inc. (NYSE:XPEV) and Lucid Group Inc (NASDAQ:LCID).
Nio was down 2.65% at $20.55 at time of publication.
See Also: Chart Wars: Between Nio And Xpeng, Which Stock Will Break Out Of Consolidation First?
Nio Daily Chart Analysis
- Shares were unable to cross back above pattern support and began to hold the level as resistance before making a strong bearish move lower. The stock may have begun to form into a bearish trend.
- 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 dropping lower in the last few weeks and now sits at 25. This shows the stock is in the oversold region and is seeing many bears pile into the stock. If the RSI continues to stay in the oversold region, the price may continue to drop.
What’s Next For Nio?
Nio is trading in a bearish trend now that it has dropped below the pattern support and couldn't form higher lows anymore. The stock has been forming lower highs and has been freefalling for the last few days.
Bearish traders are in control of the stock and are looking to see it continue to fall and trade below the moving averages.
Bullish traders are looking to see the stock bounce back and be able to cross back above the pattern support and continue to form higher lows once again. Bulls are also hoping to see the price cross back above the moving averages for sentiment to turn bullish once again.
