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Is NIO stock still a buy after falling -6.83% on Thursday?

StockInvest.us, 2 weeks ago

NIO

The NIO stock price fell by -6.83% on the last day (Thursday, 6th Jun 2024) from $5.27 to $4.91. During the last trading day the stock fluctuated 5.49% from a day low at $4.74 to a day high of $5.00. The price has been going up and down for this period, and there has been a -6.3% loss for the last 2 weeks. Volume has increased on the last day by 35 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, 83 million shares were bought and sold for approximately $407.26 million.

On Jun 06, 2024, it was reported that Citigroup gave NIO a "Buy" grade with a "hold" action.

The stock is moving within a very wide and horizontal trend and further movements within this trend can be expected. Given the current horizontal trend, you can expect NIO stock with a 90% probability to be traded between $3.82 and $5.81 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.

NIO

There are few to no technical positive signals at the moment. The NIO stock holds sell signals from both short and long-term Moving Averages giving a more negative forecast for the stock. On corrections up, there will be some resistance from the lines at $5.21 and $5.00. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Tuesday, May 14, 2024, and so far it has fallen -15.20%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month 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 $4.50 and $4.49.There is a 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 finds support just below today's level at $4.50. If this is broken, then the next support from accumulated volume will be at $4.49 and $4.00.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.260 between high and low, or 5.49%. For the last week, the stock has had daily average volatility of 5.21%.

NIO holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore 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 Hold/Accumulate to a Strong Sell candidate.

Check full NIO forecast and analysis here.