Nio Stock News and Forecast: Is it time for a bounce in NIO stock?

Nio stock fell again on Tuesday, but the speed of decline is slowing.
Nio stock should bounce on Wednesday as risk-on returns.
Rivian earnings after the close on Thursday are key for the EV sector.

Nio stock (NIO) slid again on Tuesday as high growth names continue to suffer in the current economic environment. Nio stock closed down 0.77% at $17.98, and so at least the speed of decline appears to be slowing. We expect Nio to bounce on Wednesday as the Ukraine conflict sees a civilian ceasefire evacuation hold and investors buy stocks after recent heavy selling. NIO could be targeted as a bargain given the stock has fallen from over $60. Nio is down 43% so far in 2022, so is it time to step back in?

Nio Stock News

NIO is due to begin trading in Hong Kong on Thursday, and the company will list about 59% of its Class A shares there. This listing may help reduce the risk seen by investors due to recent Chinese regulatory concerns and US delistings. We also note an interesting report from CNEVPost this morning that some people are reportedly selling their NIO ET7 preorders for up to triple what they paid for them. Test drives for the ET7 began recently and were well received. Now people are looking to cash in by trading their preorder reservations according to the report. Nio also has a stake in Pony.ai, which received an $8.5 billion valuation during its latest funding round.

Nio Stock Forecast

We had previously identified $18.48 as a key level to hold for short-term traders, and yesterday's close broke this level. Therefore, we remain bearish, but we do expect a rally today. We would not expect the rally to extend beyond $20. We can see from the 15-minute chart (second, below) that $20 represents the recent point of control and high volume zone. High volume means resistance. Opening above $18.48 should allow $20 to be tested, we just expect it to fail.

NIO chart, daily

NIO chart, 15-minute

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