- NYSE: NIO is set to rise above $40 in May's first trading day.
- Shares of the Chinese EV-maker remain in an uptrend but must surpass the $42.62 peak.
- Robust car deliveries are one of the reasons driving the equity higher.
Sell in May and go away? Not so fast for NIo Inc (NYSE: NIO), which remains in an uptrend according to the charts. Recapturing the $40 level – as Monday's premarket trading is showing – would be a significant start.
Before getting to NIO's technical positioning, it is worth examining the fundamentals. As April came to a close, the Chinese electric vehicle maker published monthly delivery figures, which stood at 7,100 vehicles. While that is behind its manufacturing capacity of 7,500, it still implies the firm is set to exceed its guidance of shipping 21,000 cars in the second quarter of 2021.
Stocks are also buoyed by similar upbeat figures from XPeng, where speculation is mounting ahead of the company's earnings report coming next week. The broader market mood is also improving after Friday's down day.
NIO Price Prediction
Make or break at $40? That is the question for many technical traders. Apart from being a round number, that price was also the closing value on April 6, giving it additional importance. As mentioned earlier, topping that level is on the cards according to premarket data, but the close is even more important.
Settling higher would prove that Thursday's close below $38.99 is the bottom of the downside correction that happened after NYSE: NIO peaked at $42.62 on April 26. Later in the week, surpassing that level would serve as a higher high and proving the uptrend.
Looking down, further support under $38.99 is at $38.40, which was a double-top in early April. Last month's trough of $35.66 is critical downside support.
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