Nio Inc. (NYSE: NIO) shares are trading lower Wednesday after the company issued fourth-quarter sales guidance below estimates. The company said it expects revenues to be around $1.46 billion, while analysts were expecting revenues to be about $1.74 billion.
Nio closed down 2.68% at $39.55.
Nio Shares Updates On Boosting Margins, ET7, Chip Shortage, Europe Expansion And More
Nio Daily Chart Analysis
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Shares are dipping lower and hanging in the middle of what technical traders call a descending triangle pattern.
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The price has seen resistance near the lower high trendline, an area that’s pushing down toward a horizontal support line. The $30 level has been an area of support in the past and may continue to hold in the future.
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The stock is trading above the 50-day moving average (green), but below the 200-day moving average (blue), indicating the stock looks to be trading in a period of consolidation.
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The 50-day moving average may hold as support, while resistance may be found near the 200-day moving average.
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The Relative Strength Index (RSI) took a dip lower and now sits at 49 on the indicator. This shows that selling pressure and buying pressure are relatively equal as of today, with slightly more selling pressure.
What’s Next For Nio?
Bullish traders are looking to see a bounce and for the stock to start heading toward the lower high resistance line. A break above this resistance could signal the stock is changing trends and beginning to see an uptrend.
Bearish traders are looking to see the stock continue to trade in the pattern and for the stock to continue to head toward the support level. Bears are then looking to see the stock fall below the $30 support for the stock to possibly see a further strong bearish push in the future.
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