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Evaluation of NIO stock downgraded after the last trading session.

StockInvest.us, 2 weeks ago

NIO

The NIO stock price fell by -0.358% on the last day (Friday, 3rd May 2024) from $5.59 to $5.57. During the last trading day the stock fluctuated 4.69% from a day low at $5.33 to a day high of $5.58. The price has risen in 8 of the last 10 days and is up by 46.58% over the past 2 weeks. Volume fell on the last day along with the stock, which is actually a good sign as volume should follow the stock. On the last day, the trading volume fell by -44 million shares and in total, 54 million shares were bought and sold for approximately $301.96 million.

On Apr 02, 2024, it was reported that Barclays gave NIO a "Underweight" grade with a "downgrade" action.

The stockhas broken the very wide and falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction, there will be support on the roof of the current trend broken, which is $5.56, a level that may pose a second chance to hit a runner. According to fan-theory $7.63 will be the next possible trend-top level and thereby pose a resistance level that may not be broken at the first attempt.

NIO

The NIO stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $4.91 and $4.60. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Thursday, May 02, 2024, and so far it has fallen -0.358%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

NIO finds support from accumulated volume at $5.48 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.

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 $0.250 between high and low, or 4.69%. For the last week, the stock has had daily average volatility of 7.83%.

The NIO stock is extremely overbought on RSI14 (86). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

NIO holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.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 Hold/Accumulate candidate.

Check full NIO forecast and analysis here.