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Nio Stock (NYSE: NIO) fell 17% in the previous week ahead of earnings. - 2
The volatility in the share prices of Nio Inc. ADR may rise due to quarterly earnings. - 3
Nio stock price drops below the 50-day and 200-day EMA.
Nio stock price (NYSE: NIO) is in a correction phase and buyers are struggling to defend the $10 support. It formed an inverted V-shape bearish pattern and eroded the gains of July.
Nio stock price dropped below the 50-day and 200-day EMA indicating the trend is again reversing. However, the confirmation of the bearish trend reversal is still awaited.
Nio Inc. – ADR lost the bullish momentum and prices faced a sharp rejection from the $16.85 level. Previously, in the months of June and July, Nio stocks performed quite well. It rallied around 130% from the 52-week low and grabbed the attention of long-term investors.
The massive rally in Nio Inc. stock is fueled by quarterly earnings. In previous earnings, the company succeeded in beating the EPS estimate which positively impacted the Nio share prices.
Later, more and more market participants entered into the rally which boosted the momentum.
At present the momentum and gains both have lost. Nio stock price closed the trading session at $10.83 with an intraday rise of 1.79%. The market capitalization stands at $18.28 Billion.
Will Nio Stock Price Correction Take Halt After Earnings?
Nio stock price (NYSE: NIO) is spending some time in a narrow-range consolidation phase. The next direction movement in the Nio share price will be visible after the release of earnings.
Nio Inc. ADR is expected to report the quarterly earnings on Tuesday, 29 August 2023. Equity analysts estimated an EPS of -0.408 and revenue estimates are $1.263 Billion.
If the company succeeds in meeting the estimates then the correction in Nio stock may take a halt. However, if the company disappoints then share prices might decline toward $8.25 which will act as the next support.
Will the Nio Inc – ADR Stock Consolidate?
Nio Inc. ADR stock formed a giant bearish candle in the past 2 weeks showing the strength of sellers. However, this week it displayed the Doji candle which shows indecisiveness.
The Nio share price corrected a lot so a short-term narrow range consolidation is possible. Moreover, the volatility in the prices may rise due to which a sharp up move or down move might be visible.
The MACD curve in Nio share slopes down and drops below the zero line indicating bearishness. Whereas, the RSI at 40 reversing upward denotes prices may reach the neutral zone.
Conclusion
Nio Stock price (NYSE: NIO) is in a correction phase and forms an inverted V-shape bearish pattern. The quarterly earnings of Nio Inc ADR scheduled in the current week will decide whether the correction will take a halt or not.
Technical levels
- Resistance levels: $12.46 and $16.18
- Support levels: $10.00 and $8.25
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/08/27/nio-stock-nyse-nio-nio-inc-adr-prepares-to-react-in-results/