News        Sectors        Watchlists

NIO Limited (NIO)

NIO stock forecast: buy or sell

Close on Oct 23rd, 2020
$27.16 -0.80%
3 months performance
136.60%
Published: October 25th, 2020 - 5.29pm EDT

NIO stock outlook

  • Counting on Friday, it's been 3 consecutive sessions in red for NIO Inc.. Price closed on Friday at $27.16 after slightly changing a -0.8%.
  • Price is drawing a scaled uptrend since last March with higher tops and higher bottoms. Up to date, shares made a 1187.2% gain since the beginning of this rally
  • NIO Limited designs, manufactures, and sells electric vehicles in the People's Republic of China, Hong Kong, the United States, the United Kingdom, and Germany.

Disclaimer:
The opinions given in this post are personal and not recommendations for you to buy or sell stocks. The author of this article does not know the specific circumstances of the reader, his or her own financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are provided for informational reasons only

NIO stock charts

Should I buy NIO Inc. stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $NIO stock a buy?

In the current situation of NIO Inc. there is not any eligible buy setup. This doesn't mean we expect a selloff for $NIO in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell NIO Inc. stock?

Knowing when to sell a stock is even more difficult than knowing when to buy it. Trading strategies help us to avoid impetuous decisions based on our emotions or the buzz surrounding the market. When selling, as well as buying, detailed setups are very simple to use but are only valid for selling stocks in your porfolio, not for shorting $NIO stock

As a golden rule, you must never mantain an operation that leads to losses greater than those expected upon purchase. When to sell shares must always be dictated by the stop-loss (automatic or manual)

Is it time to sell NIO Inc. stock?

In the current situation of NIO Inc. there is not any eligible sell setup, so NIO Inc. stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell NIO Inc. stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 2 ratings were published for NIO Inc.. General sentiment is bullish, with 2 out of 2 publishing positive outlooks

NIO Inc. ratings

Brokerage firmRating
Oct 14th, 2020
Citigroup NeutralStrong buy
Oct 14th, 2020
JPMorgan Chase & Co. NeutralBuy

Technical analysis

NIO Inc. stock started an uptrend last March, and gained an amazing 1187.2%. The price shows higher highs and higher troughs, and along the way gave some buy points for those who wanted to enter. Latest pullback was in early September, when price bounced at $15.61. Now, the price swings in a consolidation between its last top ($29.40) and its last bottom ($15.61)

SMAs overview

Moving averages are simple tools for investors to detect market direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days. Further about Moving Averages from sources like Wikipedia and Investopedia

NIO SMAs chart

Supports and resistances

Market investors use support and resistance levels as a way to identify price points in the stock price action that tend to act as barriers, preventing the price of a stock to move up or down. A support level is a level where the price tends to stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. However, if the price breaks down this level, it will probably continue descending until approaching another support level. On the contrary, resistance levels are where the price tends to find resistance as it rises. In the same way, this means that the price is more likely to "bounce off" at this level, and if it finally breaches this level, it will rally easily until it finds the next resistance

The current resistances are:

  • R1: $29.40 (8.25% above)
  • The current supports are:

  • S1: $21.05 (-22.5% below)
  • S2: $16.44 (-39.47% below)
  • S3: $15.61 (-42.53% below)
  • Bollinger bands

    The so-called Bollinger bands are a widely known studio that was created by John Bollinger. It is made up of three lines that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price surpassed the upper band on Monday, the price corrected downwards by 4.9%

    NIO RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of financial markets. It is intended to map the current and previous strength or weakness of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    Relative Strength Indicator (RSI) crossed over the 70 level Friday, marking a reading of 70.52. Contrary to what many investors may think, the fact that the RSI value is above 70 does not in any way imply a sell point, as shares can climb during several weeks being in the overbought zone

    NIO RSI chart

    Earnings and financials

    In mid-August, NIO Limited ($NIO) reported adjusted EPS for fiscal second-quarter that strongly surpassed Market expectations. Quarterly EPS was $-1.08 per share compared to the forecasted $-1.84. This Q2 report represents an earnings surprise of 41.3%.

    Compared to the same quarter last year, EPS was $-3.11, so current EPS is a improvement of 65.27%. Turnover exploded a 102.46% on an annualized basis in the fiscal 2nd-quarter, from $1.8B to $3.7B last quarter.

    NIO ($NIO) is hosting the earnings call next December.

    NIO revenues and profits chart