Forming a pinbar at a key resistance may not stop traders from bullish on the Nio share price if the day’s news dictates the market sentiment. A potential fundamental trigger comes from an unconfirmed report of the Chinese EV company starting a factory in the US as part of its global expansion.
Chinese media outlet Yicai reports that Nio is already recruiting manufacturing-related staff within the US, fuelling speculations that a new factory was in the works. However, the company has not confirmed this story. The Nio share price forecast may also be impacted by the company’s better-than-expected new car deliveries for May.
The company said Wednesday that it delivered 7,024 vehicles in May 2022. This figure exceeded the 6,711 vehicles delivered in May 2021. So far, the company has delivered 37,866 vehicles in 2022, representing a year-over-year increase of 11.8%. The Nio share price closed 2.4% higher in Hong Kong trading, and the US-exchange-listed ADR is currently trading at 1.04% higher in pre-market trading.
Nio Share Price Forecast
The price action from the emerging double bottom has hit a roadblock at the 17.87 resistance (29 April and 31 May highs). The violation of that resistance was fought back by the bears, preserving the integrity of this potential neckline. If the bulls uncap this barrier, it completes the pattern and opens the door for a measured move toward the 22.26 price barrier (2/24 March highs). A break of the 19.48 resistance (20 April high) is necessary to actualize the pattern’s completion.
On the other hand, if the bears push down further following the pinbar candle’s formation below the 17.87 resistance, the 15.88 price support comes into the picture (28 April low). A breakdown of this support sends the stock to the 14.31 pivot (16 May and 26 May lows), before the 13.16 support level formed by the 15 March low comes into the picture as an additional target to the south.
Nio: Daily Chart
