NIO (NIO): key support level is located at $38.00

Electric car stocks have great performance in 2020.

Tech (1)

Electric car stocks have great performance in 2020. Chinese electric cars marker Nio Inc (NIO) soared more than 1500% in 2020 as investors expected that electric car would be a fast developing industry in next 10 year.

According to the China Association of Automobile Manufacturers, New Energy Vehicles sales volume reached 200,000 units in November, up 24.1% on month and 104.9% on year.

Recently, NIO (NIO) announced the pricing of the offering of 68M American depositary shares at $39.00. The raising capital will be used for research and development of new products sale and service network expansion and market penetration as well as for the general corporate purposes.

On a daily chart, the ADR share prices of NIO retreated from $57 and broke below the 20-day moving average. Investors had to notice that the relative strength index indicated a bearish divergence signal. However, the rising 50-day moving average remains acting as support. Besides, the previous low at $38.00 remains intact. Therefore, the technical outlook is still bullish but investors has to be cautious on recent price action. The support level would be located at $38.00 and $29.40, while resistance levels would be located at $48.10 and $57.00.


Source: GAIN Capital,TradingView

More from Equities

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.