Sell signal, week 22
NIO drops 5.9%, a 6th straight weekly loss with the weekly RSI below 30
Our view last week
Sellers are back in charge of NIO: after last week's 0.8% dip, the stock sheds 2.2% with 91% of the week's volume on the sell side. Our technical analysis of NIO stock shows the price action in full distribution, with price just above its 30-day low, in the 3.55 area, and the weekly RSI at 31.7, close to oversold. The short is now 38.8% in profit.
This week's summary
NIO's weekly RSI slips to 29.7, into oversold territory, while the ADX rises for a 6th straight week: the decline is gaining conviction right where traders usually start looking for a bounce. Last week the price was sitting just above its 30-day low; this week it left that low behind with a 5.9% drop. Our technical analysis of NIO stock shows the price action still in distribution, and the short is now more than 42% in profit.
IQS Phase
75
in tension
Signal Strength
46
downtrend making lower lows, pace holding
Sizing
REDUCED
Ranking
#50 / 175
US stocks
Trade P&L %
+42.39%
from signal to date, no stop loss
Rank position
ranks 50th among the 175 sell signals for US stocks in our ranking, with a signal strength of 46 out of 100.
Sector context
SectorConsumer Discretionary
Benchmark ETFXLY
Sector regimeweak phase
Performanceweekly -0.47% · monthly -4.20%
NIO belongs to the consumer discretionary sector (reference ETF XLY). The sector is classified weak phase according to our weekly reading.
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