Nio Inc. (NIO) is a Chinese multinational automobile manufacturer headquartered in Shanghai, specializing in designing and developing electric vehicles. The company develops battery-swapping stations for its vehicles, as an alternative to conventional charging stations. The company has raised over $5 billions from investors. In 2021, it plans to expand to 25 different countries and regions by 2025.
NIO Daily Chart December 2022
NIO has been falling since early days of 2021. Since then, the market has developed a corrective zig zag structure (a), (b) and (c), of the Elliott Wave Principle. Currently, the stock is close to finish wave (c) the last leg of the zig zag correction and this would trigger a long-term price rally. Above we can see NIO’s daily chart of December 2022. We waited for one more low to end an impulse and complete wave (c) and wave ((II)) of the zig zag correction before starting a new rally.
NIO Daily Chart February 2023
At the beginning of December, NIO turned lower as expected. The January 2023 volatility broke the wave ((4)) high at 14.03, but the move was immediately rejected by the market. This suggested that this breakout is still part of wave ((4)) ending at 14.36. We expect the stock to continue its bearish movement and break wave ((3)) low at 8.28. Once the market breaks this level it will give us a buy signal. We believe that the ideal area to buy is in 7.05 - 4.80 zone, which is where the wave ((II)) should end and continue the uptrend.
Source: https://elliottwave-forecast.com/stock-market/not-buy-nio-breaks-october-low/