NIO Inc. stock downgraded to Buy Candidate

The NIO Inc. stock price fell by -3.01% on the last day (Tuesday, 15th Jun 2021) from $46.55 to $45.15. During the day the stock fluctuated 2.98% from a day low at $45.04 to a day high of $46.38. The price has been going up and down for this period, and there has been a 6.64% gain for the last 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 -21 million shares and in total, 44 million shares were bought and sold for approximately $2.00 billion.

Citigroup Inc. 3% Minimum Coupon Principal Protected Based Upon Russell is very positive about NIO and gave it a "Neutral - Buy" rating on June 01, 2021. The price target was changed from $57.60 to $58.30.Over the last 30 days, this security got 3 buy, 0 sell, and 0 hold ratings.

The stockis at the upper part of a very wide and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $46.56 will give a strong buy signal and a trend shift could be expected.Given the current horizontal trend, you can expect NIO Inc. stock with a 90% probability to be traded between $32.00 and $47.33 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.

The NIO Inc. 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 $44.30 and $38.60. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 months 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 Monday, June 14, 2021, and so far it has fallen -3.01%. 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 Inc. finds support from accumulated volume at $43.68 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 $1.34 between high and low, or 2.98%. For the last week, the stock has had a daily average volatility of 4.37%.

The NIO Inc. stock is overbought on RSI14 and the RSI has been falling for the last couple of days. This together with the fact that the stock is in the upper part of the trend poses a possible good selling opportunity for the short-term trader. However, one should note that some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for NIO Inc. stock to perform well in the short-term period.Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Buy candidate.