$NIO #NioLimited #USA #NYSE #Auto #Manufacturers #Stocks #Trading
NIO
Ticker: NYSE:NIO
Price: $28.40
Recommendation: Buy
Nio Outlook
Nio’s recent bull run started in June 2020, as the coronavirus pandemic accelerated a shift towards renewable energy sources that had already been well under way for a few years.
Market players believe that social distancing may be a factor that could increase the percentage of people that purchase cars, as the outbreak may leave a lasting footprint in people’s minds regarding the dangers of using public transport.
Policymakers in multiple countries have been favouring electric vehicles for years now as a way to reduce the levels of pollution in their cities, while lower oil prices have also taken a toll in the oil and gas industry, leaving oil lobbies with less money to play with to further delay favourable regulations for the industry.
In this context, Nio is emerging as a well-positioned business that could reap sizable returns from this historic transition from fossil fuels and that is the main reason why the price of its stock has seen significant upside lately.
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.
By the way, prices are vulnerable to a correction towards 20.61.
The projected upper bound is: 32.15.
The projected lower bound is: 25.31.
The projected closing price is: 28.73.
Candlesticks
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
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 52.2500. This is not an overbought or oversold reading. The last signal was a sell 4 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 70.22. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 1 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 54. This is not a topping or bottoming area. The last signal was a sell 5 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
NIO INC closed up 2.430 at 28.440. Volume was 27% below average (neutral) and Bollinger Bands were 76% wider than normal.
Open High Low Close Volume___
26.250 28.450 26.030 28.440 12,275,132
Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 27.55 20.64 9.67
Volatility: 133 105 121
Volume: 16,742,718 14,418,488 13,538,410
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 is currently 194.2% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect moderate flows of volume into NIO.N (mildly bullish). Our trend forecasting oscillators are currently bullish on NIO.N and have had this outlook for the last 43 periods. Our momentum oscillator is currently indicating that NIO.N is currently in an overbought condition.
