NIO Stock Forecast: Nio Inc edges higher as market rebounds to start the week

NYSE: NIO gained 0.59% during Monday’s trading session.
Nio founders are not concerned about delivery numbers falling below those of its domestic rivals.
Nio’s stock officially hits oversold territory amidst its recent sell off.

Stocks Reporter FXStreet

NYSE: NIO rebounded on Monday following its loaded sell off during Friday’s session on the news that ride-hailing company Didi (NYSE: DIDI) would be delisting from American exchanges. On Monday, Nio gained 0.59% and closed the first trading session of the week at $32.34. It was a nice bounce back for the broader markets which saw a high level of turbulence during all of last week. It seems that investors have shrugged off the latest concerns over the Omicron variant as the Dow Jones bounced higher by 646 basis points and the S&P 500 and NASDAQ gained 1.17% and 0.93% respectively.

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Nio’s co-founder and President Lihong Qin provided an update during a recent media press conference in China. Qin reiterated that the company is not concerned about monthly deliveries lagging rivals such as XPeng (NYSE: XPEV) and Li Auto (NASDAQ: LI), citing that Nio is more concerned with gaining a larger share of the premium EV market. Qin also noted that the stock’s popularity in Europe and North America is nice, but that Nio is focussed more on growth right now and re-allocating capital, rather than the day to day price of the stock.

NIO stock price

After the recent sell off of Nio’s stock, shares are now reaching oversold territory with an RSI that hit as low as 29 on Friday. As a comparison, the S&P 500 currently has an RSI in the 40’s, which shows that compared to the benchmark index, Nio is trading lower than its perceived future value. Nio traded just above it’s 52-week lows last week, so traders will be looking at these levels as future support.

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Stocks Reporter

FXStreet

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