NIO (NYSE: NIO) stock price has remained volatile in the past few weeks. After a strong bounce from its two-year lows, the price failed to break above the key psychological level of $10. Our analysis shows that another rejection can take the price back to its last month’s lows.
After making fresh YTD lows in March 2023, NIO stock had a strong rebound and surged by 33.8% in just two weeks. However, the price failed to gain strength above $10 and started to consolidate a key resistance. After rising by 1.87% last Friday, the shares closed the week with 2.89% gains.
NIO To Stop Providing Free Home Charging Points
As per the latest NIO news, the Chinese EV maker is going to stop providing free home charging points to its customers. The change is likely to take effect from June 1. The company also intends to reduce the number of battery swaps from 6 per month to 4. NIO is expanding its battery swap stations at a very rapid pace.
This year, NIO Inc. aims to double its sales. The company intends to achieve this sales target by increasing its vehicle lineup from 6 to 8 models. The latest price cuts from its rivals like Tesla will be the biggest headwinds for NIO stock price as the competition in the EV market intensifies.
NIO Stock Price Needs To Break Above $9.70
As mentioned earlier, NYSE: NIO chart is currently facing resistance from the key psychological barrier of $10. Just below this price level, there also lies a strong technical resistance at $9.70. This price level has previously acted as a major support but has now become a resistance. For the NIO stock price forecast to flip bullish once again, it needs to flip $9.70 into support once again.
In case of rejection from the current level, I expect the stock to retest its $8.35 support once again, which is close to its YTD lows. The broader market sentiment and the global demand for EVs will play a critical role in the future price action of NIO stock.
In the meantime, I’ll keep sharing updated outlook on NYSE: NIO in my free Telegram group that you’re welcome to join.
