Weaker technical forecast for NIO as stock downgraded to Sell Candidate

The NIO stock price fell by -4.05% on the last day (Thursday, 24th Oct 2024) from $5.19 to $4.98. During the last trading day the stock fluctuated 4.03% from a day low at $4.96 to a day high of $5.16. The price has fallen in 7 of the last 10 days and is down by -19.94% for this period. Volume has increased on the last day by 13 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, 48 million shares were bought and sold for approximately $240.68 million.

On Sep 30, 2024, it was reported that Citigroup gave NIO a "Buy" grade with a "hold" action.

Given the current short-term trend, the stock is expected to rise 49.28% during the next 3 months and, with a 90% probability hold a price between $7.43 and $11.73 at the end of this 3-month period.

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. 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 $5.20 and $5.78. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Wednesday, October 02, 2024, and so far it has fallen -30.93%. 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.

NIO finds support from accumulated volume at $4.85 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 $0.200 between high and low, or 4.03%. For the last week, the stock has had daily average volatility of 4.19%.

NIO is oversold on RSI14 (11). Some stocks may fall long and hard while being oversold on RSI, but stocks that are heavily oversold on RSI often pose good re-bounce chance and played well it can be a buy candidate.

The NIO stock holds several negative signals and despite the positive trend, we believe NIO 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 Hold/Accumulate to a Sell candidate.