Chinese EV maker NIO (NIO) has gained over 63% year-to-date, thanks to robust vehicle deliveries in recent months driven by demand for its new Onvo and Firefly brands, and renewed investor optimism about the Chinese EV market’s recovery. Also, NIO’s efforts to expand its product lineup and battery technology are expected to support future growth. Despite the rally, technical indicators suggest that NIO stock is a Buy, which implies further upside from current levels.
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Analyzing NIO Stock’s Technical Indicators
According to TipRanks’ easy-to-understand technical analysis tool, NIO stock is currently on an upward trend. The 50-day Exponential Moving Average (EMA) is 6.71, while its price is $7.35, implying a bullish signal. Also, its shorter-duration EMA (20 days) signals an uptrend.
Moreover, the Rate of Change (ROC) is a momentum-based technical indicator. It measures the percentage change in a stock’s price between the current price and the price from a specific number of periods ago. Typically, an ROC above zero confirms an uptrend. NIO stock currently has an ROC of 4.99, which signals a Buy.
Another technical indicator, Williams %R, helps traders see if a stock is overbought or oversold. For NIO, Williams %R currently shows a Buy signal, suggesting the stock is not overbought and has room to run.
Is NIO a Good Stock to Buy Now?
Turning to Wall Street, NIO stock has a Moderate Buy consensus rating based on six Buys, six Holds, and one Sell assigned in the last three months. At $6.90, the average NIO stock price target implies a downside risk of 5.74%.
