NIO Inc. stock downgraded to Hold/Accumulate

The NIO Inc. stock gained 1.46% in the last trading day (Friday, 16th Oct 2020), rising from $28.07 to $28.48. , and has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the day the stock fluctuated 5.23% from a day low at $27.94 to a day high of $29.40. The price has risen in 7 of the last 10 days and is up by 34.47% over the past 2 weeks. Volume fell in the last day by -198 million shares and in total, 185 million shares were bought and sold for approximately $5.27 billion. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.

Deutsche Bank is very positive to NIO and gave it "Buy" rating on September 08, 2020. The price target was set to $24.00.

The stock has broken the wide and strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $27.58, a level that may pose a second chance to hit a runner. According to fan-theory $32.58 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.

The NIO Inc. stock holds buy signals from both short and long-term moving averages. In addition, 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 $24.20 and $20.28. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday September 08, 2020 , and it has risen so far 67.23%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 months Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

NIO Inc. finds support from accumulated volume at $28.07.

This stock may move very much during a day (volatility) and with a very large prediction interval from the Bollinger Band this stock is considered to be "very high risk". During the last day, the stock moved $1.46 between high and low, or 5.23%. For the last week, the stock has had daily average volatility of 7.78%.

The NIO Inc. 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 Inc. 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 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 last evaluation from a Strong Buy Candidate to a Hold/Accumulate candidate.