Stronger technical forecast for NIO Inc. stock price after Friday trading.
(Updated on May 27, 2022)
Hold candidate since 2022-05-27 PDF
The NIO Inc. stock price gained 3.37% on the last trading day (Friday, 27th May 2022), rising from $16.03 to $16.57. , 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 6.51% from a day low at $15.67 to a day high of $16.69. The price has risen in 6 of the last 10 days and is up by 15.79% over the past 2 weeks. Volume fell on the last day by -13 million shares and in total, 51 million shares were bought and sold for approximately $850.88 million. 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.
The stock lies in the middle of a very wide and falling trend in the short term and further fall within the trend is signaled. Given the current short-term trend, the stock is expected to fall -22.92% during the next 3 months and, with a 90% probability hold a price between $8.91 and $15.59 at the end of this 3-month period. Do note, that if the stock price manages to stay at current levels or higher, our prediction target will start to change positively over the next few days as the conditions for the current predictions will be broken.
Signals & Forecast
A buy signal was issued from a pivot bottom point on Wednesday, May 11, 2022, and so far it has risen 30.37%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month 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. Some negative signals were issued as well, and these may have some influence on the near short-term development. The NIO Inc. stock holds a buy signal from the short-term moving average; at the same time, however, the long-term average holds a general sell signal. Since the longterm average is above the short-term average there is a general sell signal in the stock giving a more negative forecast for the stock. On further gains, the stock will meet resistance from the long-term moving average at $16.67. On a fall, the stock will find some support from the short-term average at $15.85. A break-up through the long-term average will give another buy signal, while a fall below the short-term average will add another sell signal and strengthen the general signal.
Support, Risk & Stop-loss
On the downside, the stock finds support just below today's level from accumulated volume at $15.38 and $14.93. There is 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 Inc. finds support just below today's level at $15.38. If this is broken, then the next support from accumulated volume will be at $14.93 and $14.10.
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 $1.02 between high and low, or 6.51%. For the last week, the stock has had a daily average volatility of 7.69%.
Our recommended stop-loss: $16.04 (-3.20%) (This stock has high daily movements and this gives high risk. There is a buy signal from a pivot bottom found 12 days ago.)
Trading Expectations For The Upcoming Trading Day Of Tuesday 31st
For the upcoming trading day on Tuesday 31st we expect NIO Inc. to open at $16.31, and during day (based on 14 day Average True Range), to move between $15.07 and $18.07, which gives a possible trading interval of +/-$1.50 (+/-9.05%) up or down from last closing price. If NIO Inc. takes out the full calculated possible swing range there will be an estimated 18.09% move between the lowest and the highest trading price during the day.
Since the stock is closer to the support from accumulated volume at $15.38 (7.18%) than the resistance at $17.77 (7.24%), our systems sees the trading risk/reward intra-day as attractive and believe profit can be made before the stock reaches first resistance..
Is NIO Inc. stock A Buy?
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 a hold candidate (hold or accumulate) in this position whilst awaiting further development. We have upgraded our analysis conclusion for this stock since the last evaluation from a Sell to a Hold/Accumulate candidate.
Current score: 0.671Hold/Accumulate Upgraded
Predicted Opening Price for NIO Inc. of Tuesday, May 31, 2022
The predicted opening price is based on yesterday's movements between high, low, and the closing price.
|Fair opening price May 31, 2022||Current price|
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