NIO Inc ADR corrected 21% from a recent high

Nio stock (NYSE: NIO) fell 12.36% in the previous week and formed a bearish candle. It faced rejection from the $16.00 and the bulls lost the positive momentum.

Nio stock price reversed down and might test the EMAs in the coming few sessions.

However, the prices are still trading above the 50-day EMA and 200-day EMA. It showcases the trend is still in an upward direction and buyers will try their best to defend the support.

Nio Inc. – ADR has performed well in the past few months and rewarded the short-term bullish traders.

In the mid of July, Nio stock broke out of the $10.00 hurdle. It created a hope for the bullish trend reversal and prices began to rise by forming higher high candles.

Nio Inc stock managed to climb above the 50-day and 200-day which further fueled the rally. After the breakout, share prices rallied 55% (approx.) in the short span of time and hit a high of $16.13.

Meanwhile, during the rally the surge in the buying volume is also visible which increases the reliability of the breakout.

Will Nio Stock Price bounce back from the $11 support?

Nio Stock (NYSE: NIO) showed a surprising rally and challenged the sellers at $16.00. However, In the August month, sellers seem to be winning the battle and more downside is possible.

The recent correction in Nio shares looks scary and no signs of recovery in the price action are visible.

However, until Nio stock sustains above $10.00 we might expect that a short-term pullback is possible. But, the stock price will pick up momentum when buyers are able to break out of the $16 hurdle.

The technical analysis suggests Nio stock price is in bear grip and 5% to 10% more sell-off is possible. However, the prices will eventually bounce back from support.

Correction in Nio Inc ADR stock begins

Nio Inc. ADR stock formed a Doji candle near the supply zone. In the previous week, prices broke $13.00 and formed a bearish candle. It shows the dominance of sellers on the higher levels.

The MACD curve generated a sharp negative crossover and the histogram bar is also declining. It indicates prices continue to trade with the bearish bias for some more time.

Whereas, the RSI at 52 denotes neutral territory and an equal level of tug-of-war between buyers and sellers.

Conclusion

Nio Stock (NYSE: NIO) triggered profit booking and fell 12.36% in the previous week. The stock returns back to the EMA which is likely to act as an immediate support for the bulls.

The technical analysis suggests, NIO Inc. – ADR is mildly bearish and more downside is possible.

Technical levels

Resistance levels: $15.00 and $16.00
Support levels: $11.00 and $10.00

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.