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NIO
Ticker: NYSE:NIO
Price: $53.49
NIO News
There’s no denying that NIO has tremendous operational momentum today.
The Covid-19 pandemic negatively impacted the company in the first quarter of 2020. But, ever since then, the EV maker has been absolutely on fire. In April, NIO’s delivery trend reversed course, with volumes rising 181% year-over-year as China’s economy started to rebound from the pandemic and the government ramped up EV support.
That was only the beginning.
NIO rattled off 216% delivery volume growth in May, 179% growth in June, 324% growth in July — so on and so forth, all the way to December, creating a stretch of nine straight months of 100%-plus delivery growth.
Why the huge growth surge?
Outside of the fact that China is aggressively supporting EV adoption through huge subsidies, NIO has — through its sleek car designs, top-performance vehicles, swanky marketing campaigns and exclusive branding — cemented itself as the de facto leader in China’s booming premium EV category. Plus, NIO is pioneering a novel Battery-as-a-Service model that allows NIO drivers to rent car batteries (not own them), which significantly reduces the cost of the vehicles.
In other words, NIO is selling the coolest, highest-performance luxury EVs in China at blockbuster prices and at a time when all drivers in China are going electric. It’s no wonder the company is rattling off such huge growth rates, or that NIO stock is flying high.
That’s the good news.
The better news? This growth story is the top of the first inning.
Business Summary
Nio, Inc. designs, manufactures and sells smart and connected electric vehicles. It manufactures autonomous driving electric vehicles integrated with next generation technologies and artificial intelligence.
It manufactures ES8, which is a seven-seated all aluminum alloy body electric sports utility vehicle (SUV). It is equipped with e-propulsion system which is capable of accelerating from zero to 100 km per hour in 4.4 seconds and delivering a New European Driving Cycle driving range of up to 355 Kilometers (km) and a maximum range of up to 500 km in a single charge.
It is also focused on providing vehicle charging solutions, which include Power Home, Power Swap, Power Mobile and Power Express service. It also offers various value-added services to its users, such as statutory and third-party liability insurance and car damage insurance through third-party insurers, repair and routine maintenance services, courtesy car during lengthy repairs and maintenance and roadside assistance.
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 61.44.
The projected lower bound is: 46.57.
The projected closing price is: 54.00.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 89.8046. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 64.84. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 23 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.
Rex Takasugi – TD Profile
NIO INC closed up 4.750 at 53.490. Volume was 36% above average (neutral) and Bollinger Bands were 20% narrower than normal.
Open High Low Close Volume
51.200 54.447 50.670 53.490 213,109,728
Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 47.68 43.39 19.07
Volatility: 77 111 117
Volume: 120,298,176 188,577,680 119,045,648
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
NIO INC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
NIO INC is currently 180.6% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of NIO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on NIO and have had this outlook for the last 16 periods.
