Nio Inc. (NYSE:NIO) shares are trading higher Monday morning following a media report suggesting the company will begin taking orders for its electric ET7 sedan in January. Formal reservations are expected to take place in mid-January, with deliveries expected by the end of the quarter
Nio was up 7.63% at $41.61 at press time.
See Related: Why NIO Shares Are Trading Higher Today
Nio Daily Chart Analysis
- Shares look to be climbing higher in what technical traders call a descending triangle. If shares can break above resistance, the overall trend of the stock may reverse.
- The price has seen resistance near the lower high trendline, an area of resistance that has held many times in the past. Support has been found near the $30.50 area and may continue to be found near this area, but if the pattern continues the stock could see a bearish push past this area.
- The stock is trading above the 50-day moving average (green) and crossed above the 200-day moving average (blue) Monday, indicating the sentiment in the stock looks to be turning more bullish.
- Each of these moving averages may hold as an area of support in the future.
- The Relative Strength Index (RSI) saw a slight push higher and now sits at 54 on the indicator. This shows that buying pressure is slightly higher than selling pressure overall.
What’s Next For Nio?
Bullish traders would like to see the stock continue to push higher and go on to break above the pattern resistance. A break above the resistance and the stock could see a strong bullish push and change of trends.
Bearish traders would like to see the pattern continue to form and for the stock to fall below the $30.50 level. If the stock began to hold this level as an area of resistance, the stock could see a further bearish push in the future.
