Good day Traders and Investors. In today’s article, we are going to follow up on Nio Inc. ($NIO) forecast posted back in Feb 2022 and take a look at the latest count. You can find the article here.
Nio (NYSE: NIO) is a Chinese multinational automobile manufacturer with headquarters in Shanghai. It specializes in designing and developing electric vehicles. Nio tries to distinguish itself by innovating in two key areas which are battery technology and self-driving software. The company offers modular batteries for an easy swap in minutes. It also offers Battery-as-a-Service (BaaS) which allows customers to subscribe for car batteries rather than paying for them upfront.
Nio ElliottWave Latest Sep 2022 View (Weekly):
Weekly Chart above suggests that NIO has ended the cycle from all-time low. The stock is now pulling back to correct that low within wave ((II)) in a 3 swing structure. The first leg of the correction wave (a) ended at $31.91, bounce in wave (b) ended at $55.13 and sellers appeared to resume the downside. Wave (c) has managed to reach the blue box area ($18.73 – 1.19) where buyers are expected to appear and start the next leg higher but we can still see more downside in wave V of (c). We don’t like selling it. As far as the pullback stays above $1.19, we expect the stock to extend higher in the future.
Nio ElliottWave Alternative Sep 2022 View (Weekly):
What about the alternative view? We at Elliottwave Forecast look at all the possibilities and try to educate our members on alternative counts. The Weekly Chart above shows the alternative view.
There is a chance that the stock can remain supported and trade in 2nd dimension when the rest of the market continues lower. As long as price stays above 05/12/2022 low at $11.67, Nio can pullback in 3, 7 or 11 swings to correct cycle from May 12th before buyers appear and continue the rally. We like to remain long from the Blue Box area.
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