NIO Shares Surged Over 9% on Sales Growth Expectations

As evidenced by the NIO stock price chart, yesterday's trading closed at $4.93, while today the NIO share price is around $5.40, indicating an increase of over 9%.

According to MarketWatch, the rise is driven by expectations that the Chinese electric vehicle manufacturer's deliveries are likely to reach record levels.

The existing record was set in July last year when the company achieved monthly sales of 20,462 cars. However, analysts believe this result could be surpassed in May this year due to ongoing discounts on new cars and batteries.

The daily chart of NIO shares today shows that the price is in a long-term downtrend (indicated by the red trend channel) due to the global decline in demand for electric vehicles.

However, there are fundamental reasons to expect that the downward trend will be broken:
→ China is intensifying its efforts to develop electric vehicles – the State Council has presented an action plan for decarbonisation.
→ This month, the International Monetary Fund raised its forecast for China's economic growth in 2024 from 4.6% to 5%.

Technical analysis of the NIO stock chart shows that:
→ The price is in a downtrend and below the median line, which can be expected to provide resistance.
→ Resistance may also be encountered at the $7 per share level, which acted as support at the end of 2023.
→ The $4.77 level has changed its role several times but has provided support over the past 10 days, giving the bulls a foothold.
→ The minimum C is at the 50% level of the A→B impulse, which is a sign of a bull market.

On June 6, NIO will present its report for the first quarter of 2024. If the report is strong, it could give the bulls more confidence and lead to attempts to reverse the long-term downtrend.

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