- NYSE:NIO fell by 1.88% on Wednesday, and growth sectors pulled back as the broader markets finished in the red.
- Nio investors are hoping for growth with some bullish catalysts for the rest of 2021.
- Nio continues to meet resistance around the $44 price level, after failing to retest it several times.
NYSE:NIO has seen its bullish breakout stall this week as it continues to build up pressure for what investors are hoping will be a long awaited move higher. On Wednesday, Nio fell by 1.88% to close the choppy trading session at $42.74. The markets were mostly unsettled on Wednesday ahead of the May Consumer Price Index report, which could give an indication on the rising rate of inflation in the U.S. economy. Growth stocks finished the day mostly in the red.
Nio investors are hoping that several upcoming catalysts for the company will help propel the stock back to levels near its all-time high price of $66.99. The electric vehicle maker has been hard at work increasing its production to an estimated 20,000 vehicles per month in a new deal with Jianghuai Automobile Group. Nio has also been working on its first international expansion into the European country of Norway, which has been one of the top markets for electric vehicles on the continent. Finally, Nio is working towards adding more vehicles to its lineup in 2022, with the much rumored luxury SUV and minivan models.
Is NIO a good stock to buy?
Nio continues to struggle with the $44 price level acting as resistance several times over the past few months. The stock has been notably in an area of consolidation since early March, and just as we thought it may break out to the upside, it was rejected once again. Nio could be forming a bullish triple bottom that usually sees the stock break through resistance to the upside.
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