Last week's plunge is losing momentum
NIO stock rebounds 8.7% as buyers retake the volume
Last week's plunge is losing momentum
Our view last week
NIO shares drop 8% this week, with 96% of volume on the sell side — about as one-sided as selling pressure gets. Yet inside that decline a clean double bottom formed in the 4.6 area, with a 17% intermediate rebound: a first sign of exhaustion. Our weekly technical analysis reads a declining ADX, the trend losing conviction even as price falls. The short is now more than 23% in profit.
This week's summary
NIO shares rebound 8.7% this week, with 85% of volume on the buy side: a sharp reversal from last week's 8% plunge, when sellers controlled 96% of the tape. The double bottom in the 4.6 area flagged in last week's technical analysis is holding up: CMF stays negative but eases, and ADX keeps slipping, a sign the decline is running low on fuel.
IQS Phase
67
in tension
Signal Strength
24
decline losing steam
Sizing
MINIMUM
Ranking
#42 / 138
US stocks
Trade P&L %
+16.58%
from signal to date, no stop loss
Rank position
ranks 42nd among the 138 sell signals for US stocks in our ranking, with a signal strength of 24 out of 100.
Sector context
SectorConsumer Discretionary
Benchmark ETFXLY
Sector regimein positive regime
Performanceweekly +6.11% · monthly -1.69%
NIO belongs to the consumer discretionary sector (reference ETF XLY). The sector is classified in positive regime according to our weekly reading.
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