Nio Share Price Recovers After Record Deliveries
Fiona Cincotta February 4, 2021 10:56 PM
Nio rebounds off trend line support after record delivery numbers.
Electric Vehicle stocks have seen huge demand over the past year. Whilst Tesla is the most well-known of these stocks, it is by no means the only Electric Vehicle company to have performed well in 2020
The latest share price surge higher comes after a sales report revealed strong demand for NIO’s upscale electric SUV’s.
The January report revealed this week confirmed a monthly record of 7225 vehicles sold in the first month of the year, despite strong competition from Tesla’ made in China Model Y. This represents a 352% year on year increase from January 2020.
The figure beat rival XPeng’s January deliveries of 6015 and LI Auto’s 5379 vehicles
The next major event for NIO investors will be Q4 and full year 2020 earnings. The date is yet to be announced but it is expected sooner rather than later, most likely in the second half of February.
Apple announcing that it is partnering with South Korean automobile maker Kia for project Titan promise to shake up the EV industry over the coming years with the Apple Car. Alibaba has also partnered with state run automaker SAIC.
Nio technical analysis
After hitting an all time high of $67.00 at the start of the year, Nio’s share price retreated before finding support on the lower band of an ascending channel pattern at 54.50.
A recovery off 54.50 this week has seen the price test the key resistance of 57.60 (November’s high). Should the price convincingly break through this important level for the bulls then the psychological resistance level of 60 needs to be overcome before the bulls target $67.00 all time high.
Should the price fail to hold the key $57.60 level then 54.65 the lower band of the ascending trendline could come into play with a move below negating the current longer term uptend. A move below here could see 51.65 the 50 sma tested.
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