When it comes to stocks, there are certain price levels that are more important than others. And shares of NIO Inc. (NYSE:NIO) have just reached one.
In April, the stock hit resistance when it got to the $43 level and a sell-off followed. This resistance broke in June and shares moved higher.
When this happened, many of the investors who sold their stock at $43 came to regret their decision. A number of them decide to buy their shares back, but they will only do so if they can get the same price they sold at. As a result, they place their buy orders at $43.
See Also: Nio Stock Holds Key Support, But Flashes Bearish Signal
If there are enough of these buy orders, it will form support at $43. This could prop up the stock and could even cause it to rebound.
If there isn’t enough support, the level will break and Nio could make another large move lower.
