NIO looks set to continue uptrend after huge 2020 rally
NIO follows Tesla’s lead, but will the Chinese electric car-maker continue its incredible post-Covid gains?
NIO breakout points towards further upside
The recent rise in Tesla has shone a light on the electric car sector, with many looking for the next company that will replicate this incredible rise. NIO is one of those stocks that has been at the forefront of that list for many, with the Chinese company specialising in the manufacturing of smart, high-performance electric vehicles.
Despite the coronavirus, the company has managed to deliver a record amount of vehicles in May. With China alone likely to provide huge demand thanks to the NEV (new energy vehicle) incentive scheme, there is plenty of reasoning behind the gains we have seen in recent months. Nevertheless, with the stock having gained over 850% since the March lows, investors and traders will be keenly following this stock as they seek to gauge whether the trend is set to continue or reverse.
NIO: technical analysis
The daily chart highlights the recent breakout from a symmetrical triangle formation, with the stock rising into record highs. The break through $1643 brings about a fresh bullish signal, with the subsequent retracement seen last week providing a fresh buying opportunity. With that in mind, a bullish outlook is in play here, with a break below the $1254 level required to negate that view.
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