NIO Stock Forecast and Quote: NIO stock retreats to moving average support ahead of Fed decision
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UNLOCK OFFER- NIO drops on Tuesday and follows up by dropping 2% in early trade on Wednesday.
- Fed interest rate decision and statement have traders on hold.
- NIO still in a strong uptrend but closing in on support.
NIO shares had a spectacular 2020 and suffered in the first half of 2021 falling from above $60 to near $30. A nice base formation in May set the scene for a breakout in June as some fundamental data helped the sector. First President Biden announced massive plans to support the green economy and electric vehicle stocks liked what they heard. Delivery reports earlier in June from NIO, LiAuto (LI) and XPeng (XPEV) all were positive as the Chinese electric vehicle market looks to heat up.
All this led NIO to break out of the wedge formation it had been building since May and NIO stock tracked higher heading for $50.
NIO stock forecast
NIO shares have stalled as the Fed decision approaches. Understandable as investors wait and see if tapering and future rate hikes are not as far into the future as previously thought. The $47.13 resistance level worked perfectly and NIO shares now retrace to the 9-day moving average at $43.73. Below this is strong support from the 200-day moving average at $40.24. The top of the wedge formation is also close to this level, heightening its importance. A break here and the risk reward becomes heavily skewed to further declines. If the Fed contains equity markets then for NIO above $47.13 volume dries up which could see a break accelerate to $54.86 the next resistance.
- NIO drops on Tuesday and follows up by dropping 2% in early trade on Wednesday.
- Fed interest rate decision and statement have traders on hold.
- NIO still in a strong uptrend but closing in on support.
NIO shares had a spectacular 2020 and suffered in the first half of 2021 falling from above $60 to near $30. A nice base formation in May set the scene for a breakout in June as some fundamental data helped the sector. First President Biden announced massive plans to support the green economy and electric vehicle stocks liked what they heard. Delivery reports earlier in June from NIO, LiAuto (LI) and XPeng (XPEV) all were positive as the Chinese electric vehicle market looks to heat up.
All this led NIO to break out of the wedge formation it had been building since May and NIO stock tracked higher heading for $50.
NIO stock forecast
NIO shares have stalled as the Fed decision approaches. Understandable as investors wait and see if tapering and future rate hikes are not as far into the future as previously thought. The $47.13 resistance level worked perfectly and NIO shares now retrace to the 9-day moving average at $43.73. Below this is strong support from the 200-day moving average at $40.24. The top of the wedge formation is also close to this level, heightening its importance. A break here and the risk reward becomes heavily skewed to further declines. If the Fed contains equity markets then for NIO above $47.13 volume dries up which could see a break accelerate to $54.86 the next resistance.
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