NIO INC. ADS - NIO Limited (NIO) - 05/30/2023 (GMT)

Shares in NIO limited (symbol ‘NIO’) have been trading in a declining channel throughout the first quarter of 2023. The company is expected to report its earnings for the fiscal quarter ending March 2023 on Friday 9th of June before market open. The consensus EPS is $-0,22 compared to the result for the same quarter last year of $-0,18. 
 
‘The expectations of the negative EPS only makes sense since the company is yet to be profitable. Investors will want to watch for updates on the company’s global expansion. Nio has a relatively large portion of the Chinese market but is facing increasing domestic competition, although in mid May Ford announced that they will be scaling down their EV operations in China which is considered welcome news for NIO. This has the company planning to expand further into Europe while any positive news about this expansion could also be beneficial to NIO stock.‘ said Antreas Themistokleous, an analyst at Exness.

 On the technical side the price has been trading in a declining channel for the first quarter of the year with the last retest happening last week where the price found sufficient resistance around the $8,50 price area where was the upper band of the Bollinger bands, the 50 day SMA and also the upper boundary of the channel.

The 50 SMA is still trading well below the 100 SMA indicating that the bearish momentum is still in effect while the Stochastic oscillator is close to the extreme oversold levels and possibly signaling a correction might be visible in the coming sessions. This might take some time to happen though since volatility is kind of slowed down as we can see a contraction of the Bollinger bands close to its 20 SMA line.