NIO Stock Price Jumps 8%; Is this the Comeback of NIO Stock?

NIO stock price surged 8.92% this week as buyers are trying to breach the level of 50 EMA. However, the stock price took reversal from $9.25 after the earnings release.

Moreover, the company has some pros and also has some risk factors involved in it. At the time of writing, the company was trading 39.9% below its estimated fair value and the revenue of the company was forecasted to grow at 27.85% per year. However, the company is currently unprofitable and the share price has been volatile for the past 3 months which is higher than 75% of US stocks.

Simply Wall St. analysts’ growth forecast is that the annual earnings of the company will grow by 64.5%, industry earnings will grow by 21.0% and the market earnings will grow by 15.4%. Moreover, the company revenue is forecasted to grow by 27.9%, industry revenue to grow by 18.0% and market revenue would by 7.8%.

Nio Inc. stock reported revenue of $1.25 Billion and a net income of -$872.06 Million with a profit margin of -69.79% which is not so good as compared to the previous quarter.

Will NIO Stock Price Reverse Back From the Lower Levels?

NIO stock price halted near the value of $16.16, breaking below the key moving averages. However, the previous week buyers tried to attain the level of 50 EMA but failed in their attempt as the price took a rejection from the level of $9.25 after earning release and heading downwards.

RSI is in bearish territory near the oversold zone. RSI is trading at 38.41 and the 14-day SMA is trading at 36.20 below the RSI curve. The RSI curve is giving a bearish outlook on the daily charts.

MACD is currently in bearish territory below the median line. MACD curve is at -0.6573 points and the signal curve is at -0.6719 points giving a bearish outlook.

Analysts Take on the Nio Stock

There is a mixed opinion among 35 analysts who follow NIO Inc stock. More than half of the 20 analysts rate NIO as a Strong Buy, while 4 give it a Buy rating. 9 of the analysts recommend holding the stock, and none of them advise selling it. Only 2 of the analysts have a Strong Sell rating for NIO.

NIO stock has an average price target of $13.13, which implies a potential increase of 49.40% from its current price of $8.79. The price targets vary from a high of $21.74 to a low of $7.12.

Conclusion

NIO stock price is currently in a bearish grip. Indicators like MACD, RSI, and EMAs are on the bearish side. However, the stock price probably took a reversal from the level of $7.04. As per the trading view, analysts also gave a good buy rating for NIO Inc. stock.

Technical Levels

Support Levels: $7.04 and $7.83.

Resistance Levels:  $11.19 and $10.31.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your own research before making any financial decisions

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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