Evaluation of NIO Inc. stock downgraded after the last trading session.StockInvest.us, 6 months ago
The NIO Inc. stock price fell by -4.51% on the last day (Friday, 23rd Jul 2021) from $46.07 to $43.99. and has now fallen 3 days in a row. During the day the stock fluctuated 4.72% from a day low at $42.50 to a day high of $44.50. The price has been going up and down for this period, and there has been a -3.38% loss for the last 2 weeks. Volume has increased on the last day by 11 million shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 49 million shares were bought and sold for approximately $2.17 billion.
HSBC is very positive about NIO and gave it a "Hold - Buy" rating on July 09, 2021. The price target was set to $69.00.Over the last 30 days, this security got 2 buy, 0 sell, and 0 hold ratings.
The stock lies in the lower part of a very wide and strong rising trend in the short term, and this may normally pose a very good buying opportunity. If the lower trend floor at $41.20 is broken, it will firstly indicate a slower rate of rising, but may also be an early warning for a trend shift.Given the current short-term trend, the stock is expected to rise 28.8% during the next 3 months and, with a 90% probability hold a price between $53.06 and $72.72 at the end of this 3-month period.
A buy signal was issued from a pivot bottom point on Friday, July 16, 2021, and so far it has risen 2.78%. Further rise is indicated until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. The NIO Inc. stock holds sell signals from both short and long-term moving averages giving a more negative forecast for the stock. Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up, there will be some resistance from the lines at $44.40 and $45.85. A break-up above any of these levels will issue buy signals. Furthermore, there is currently a sell signal from the 3 months Moving Average Convergence Divergence (MACD). Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.
On the downside, the stock finds support just below today's level from accumulated volume at $39.84 and $34.87.There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, NIO Inc. finds support just below today's level at $39.84. If this is broken, then the next support from accumulated volume will be at $34.87 and $34.33.
This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $2.01 between high and low, or 4.72%. For the last week, the stock has had a daily average volatility of 5.83%.
The NIO Inc. stock holds several negative signals and despite the positive trend, we believe NIO Inc. will perform weakly in the next couple of days or weeks. Therefore, we hold a negative evaluation of this stock.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Sell candidate.Check full NIO Inc. forecast and analysis here.