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NIO stock price faces rejection near the distribution zone. - 2
Stock prices collapsed for three consecutive trading sessions due to a lack of buyers at those levels. - 3
The buyers wait for prices to reach the demand zone, to begin accumulation.
NIO stock price witnessed scarcity of buyers and collapsed for three consecutive trading sessions, marking a fall of nearly 16%. The EV manufacturer marked a steep fall as the buyers waited for the price dip in order to buy the stocks. Nio Inc. has been under several speculations, as the investors are eager for the company’s next move amid prolonged market volatility.
Nio Inc.’s Next Earnings
Investors are eagerly hoping for strength from Nio Inc. as the release of the next earnings report approaches. The reports will be for the period ending in March 2023. The past three reports were rolled out with negative results. The previous reports revealed a difference of 67.84% between the estimated and reported earnings. The estimated earnings were negative $0.265, whereas the reported came out to be negative 0.445.
The reported revenue displayed a gap of more than 6% from the estimated values. The negative drops infused the selling sentiment among the investors. The estimates for the upcoming reports are placed around the previous figures. The estimated earnings are valued at negative $0.383 and the revenue is projected to be about $1.7 billion. The estimated revenue is about 26% less from the previously reported revenue. This might affect investors’ accumulation plans.
NIO Stock Price Action Prognosis
NIO stock price marks a collapse for three consecutive trading sessions. The price action observed a lack of buyers, as they waited near the demand zone. The overpowering selling pressure made the prices open with wide gaps displaying robust bearish pressure. The trading volume reported the escalating seller dominance in the market. The falling price took support at $8.25 and since the price reached the demand zone, it witnessed some buyer action.
The volatile movement in Nio Inc. causes Bollinger Bands to diverge, indicating a continuing volatility. The EMA ribbon floats above the current price action, reflecting bearish trend in the market. The MACD forms a bearish divergence and records seller bars in the region below the zero-histogram mark. The RSI drops near the 40-range reflecting seller dominance. The present scenario presents a phase where sellers are overpowering buyers who are waiting for NIO stock price to drop.
Conclusion
Nio Inc. is facing a highly volatile market. The overpowering sellers are casting a shadow over NIO stock price and establishing a bear trend in the EV market. The investors hold high hopes from the approaching revenue reports but the projected estimate can change the game. The support near $8.25 acts as a strong level to retrace from.
Technical levels
Support levels: $8.25 and $7.65
Resistance levels: $9.80 and $10.40
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and 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/2023/04/22/nio-stock-price-buyers-await-the-dip-to-begin-accumulating/