In the past week, NIO stock went up 7 percent. Meanwhile, the stock happily even reached a new all-time high of USD 53.96. Since the steep rise at the end of October, the price has also seen a considerable increase in value of around 71 percent!
Incredible annual performance
No question: The Nio share is one of the high-flyers on the stock market in the current year with a 4-digit price return. Those who bought shares in the company at the beginning of the year can so far enjoy a price increase of more than 1,000 percent . The share initiated the strong upward trend at the end of May. Since then, the share has only known the north. The 38-day line acted as the lower trend line of the upward movement.
Is there a major correction ahead?
What is noticeable in the chart image are the steep price surges. As a result, however, corrective movements set in shortly afterwards. Fortunately, these have so far only been of short duration and mostly the result of profit-taking.
However, the steep rise in recent weeks has increased the risk of a major corrective movement for NIO stock. This is made clear, among other things, by looking at the 38-day line already mentioned. Because the price has already rushed away from the price indicator (GD38: $28.57).
Analyst vote on Nio share
There are currently 16 analyst assessments. The share receives 9 ‘Buy’ ratings and 1 ‘Overweight’ rating. There are also 4 ‘Hold’ ratings and 2 ‘Sell’ ratings. The average target price of $20.74 is only around half of the current price.
In addition, the Nio share even exceeded the previous maximum price target ($40.02). Even if there have been significant upward price target adjustments in the last few days and weeks, many factors currently speak for a possible larger correction movement.