NIO Stock News and Forecast: Bulls shrug off downbeat deliveries, Chinese techlash

Update August 4: Nio Inc (NYSE: NIO) has kicked off Wednesday's trading session with an upswing of 1.77% to $45.45, reversing roughly all of Tuesday's losses. Shares of the Chinese electric vehicle company have been benefiting from the calmer mood around Beijing's persecution of tech companies. Moreover, investors seem to shrug off Nio's delivery numbers. The firm's figures failed to meet those of rivals. Critical resistance awaits at $46.77 with bulls eyeing a recapture of the $50 level. Support is at $42.80.

NYSE:NIO failed to extend its recent rally, as July delivery numbers looked good at first, but failed to impress investors compared to its rivals. On Tuesday, shares of NIO sank by 2.79% and closed the trading day at $44.57. It was a quiet day for growth stocks, as cyclical sectors like energy and industrials provided much of the strength for the Dow and S&P 500. Electric vehicle stocks, in general, pulled back after riding higher over the last week on the coattails of industry leader Tesla (NASDAQ:TSLA). 

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Nio reported its July delivery numbers on Monday, and at first glance, the market seemed to approve. On Tuesday, investors did a three-point turn and decided that while Nio’s numbers were impressive, the ongoing threat of the global chip shortage is weighing on the stock. Nio reported a 125% year over year rise in deliveries, although that paled in comparison to rivals like XPeng (NYSE:XPEV) and Li Auto (NASDAQ:LI). The relatively slower growth combined with a down day for the EV sector and China sector in general, culminated in shares of Nio erasing its gains from Monday’s pop.

NIO price prediction

NIO continues to look bearish on the chart and only a break of $469.89 will change this view. Breaking here will end the series of lower highs. Keep an eye on the Moving Average Convergence Divergence (MACD) as it looks to break into bullish territory. Direction is not too strong here with no standout trades. A break of $46.89 can be added to with a stop at the 9-day moving average, otherwise, the risk is probably to the downside. Breaking the July low at $38.66 (actually breaking the psychological $40 likely to do it) should see the move accelerate to our first support zone at $32.

The Chinese government added more pressure to U.S. listed stocks on Tuesday, after state media picked Wall Street favorite Tencent (TCEHY) as its next victim. The CCP compared online gaming to an opium addiction, particularly amongst children. This is just the latest in a long war of words between the Chinese government and domestic tech companies that trade on the U.S. exchanges. Shares of Tencent were down 7.32% on Tuesday, following AliBaba (NYSE:BABA) declining by 1.35% after missing revenue estimates in the second quarter. 

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