The Nio share price continues to face steep price declines this Thursday. The stock’s price pressure continues as a fallout from the reduction in Chinese auto sales. Data released by the China Association of Automobile Manufacturers last week shows that car sales in China slumped for the 6th straight month, dropping 9.4% from the same period in 2020.
The continued shortage in semiconductors is still creating headwinds to the production of vehicles worldwide. The Chinese car market is the world’s biggest, and the impact of the semiconductor shortage is being felt in the domestic market. The situation is causing some concern for Nio’s investors, and this is why better-than-expected Q3 2021 earnings from Nio has not translated into appreciable upside moves in price.
The Nio share price tanked nearly 5% on Monday and looks set to open the day flat.
Nio Share Price Outlook
The Nio share price looks set to test the resistance at 41.31. A break of this price level brings 43.14 into the picture, with 46.07 and 47.58 serving as additional targets to the north.
On the flip side, a breakdown of the channel’s lower edge could further push the decline towards 35.91, but only if the original break takes out 39.33. If the deterioration is extensive, 35.91 and 34.64 come into the picture as additional targets to the south.
Nio: Daily Chart
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