- Nio Inc.’s MACD indicator has formed a negative crossover, along with the formation of the red histogram.
- NIO stock has given a return of -10% in the previous year.
- The net cash of NIO Inc. is $2.1 Billion and it has declined by -48% YoY.
NIO, Inc. operates as a holding company involved in the creation, production, and distribution of electric automobiles. Its offerings encompass the EP9 supercar and the ES8 7-seater SUV.
The stock of Nio Inc. (NIO) is presently following a downward trajectory in its weekly price pattern, characterized by a consistent formation of lower lows.
The company has a net cash of $2.1 Billion and it declined by -48% yearly. Also, the gross profit has declined by 93.3%, indicating a weakness in the financials of the company.
In the past, the stock price has recorded a decrease of -10%, indicating a history of poor performance.
It’s worth noting that Nio Inc. does not offer dividends to its shareholders, which may discourage investors seeking regular income from taking long positions in the stock. This lack of dividend payouts can influence certain investors, particularly those looking for passive returns.
Nio Inc. reached its peak share price of $66.9 on January 17, 2021, after which it entered into a prolonged downtrend. Since then, the price has declined by over 85%. While there was a brief period of support at the $7 level with a minor recovery, it was short-lived, and the price resumed its downward trend after encountering resistance.
The current NIO stock price is trading within a narrow range, close to the support level. The overall structure of the stock appears fragile, and if it breaches the immediate support level, there is an anticipation of further price declines in the coming days.
Nio Inc. (NIO) Technical Analysis
The MACD line for the NIO stock is forming a negative crossover, followed by the formation of the red histogram. This configuration is considered as the negative signal and the price is expected to decline in the upcoming days.
The RSI line for NIO Inc. is also below the SMA line. Both the lines are near to the 40 level which is considered as the negative zoone. Hence, the price is gaining a weakness.
Conclusion
In conclusion, the NIO stock is showing a sign of downward momentum, with the price trading near the support level. The stock has given a negative return in the previous year and the indicators are also negative for the stock. Hence, if the price is below the immediate support level of $7.2, a further downfall can be expected in the upcoming days.
Technical Levels
· Support Level: $7.29 and $4.67
· Resistance Level: $14.9 and $19.8
Disclaimer
The views and opinions of the author, or anyone named in this article, are for informational purposes only. They do not offer financial, investment, or other advice. Investing or trading crypto assets involves the risk of financial loss.