- NIO Stock Price Prediction: The NIO price has reacted to the current situation in the market.
- The company is reporting big revenues but burning in operating profit. What’s the reason?
- The MACD and EMAs both gave an uptrend signal, see what’s arriving in the future.
About Nio Inc
NIO Stock Inc is a listed automobile company that has its majority focus on producing and selling smart electric vehicles in the premium category.The company also aids in the development of battery-swapping autonomous technology,
One of the perks of NIO is that they offer a lifetime free warranty, car connectivity services, and Crash rescue services they operate in various countries like the Netherlands, China, Germany, and many more.
NIO was founded in 2014 and has raised over $5Bn in funding being in the hot EV segment. The company is headquartered in Hefei, china with 26k employees, NIO is led by William Li, the CEO of the company.
Some financials and Key performance ratios
- The revenue of NIO in the last quarter, ending in March 2023 was reported as $1.5Bn which is calculated to be a 0.5% decline from the YOY chart.
- The last year’s annual report clocked the revenue as $7.1Bn which was a 26% increase from the previous year
- The gross profit of NIO for the quarter was $0.24M only which is an 89% decline from the last year. (YOY), This is a result of an increased Cost of goods sold (COGS)
- The operating income for the company (Income after indirect expenses such as marketing R&D) was reported as $-744M
- The net profit for NIO came up to $-699M
- Gross Margin in the last quarter was reported as 7.5%
- Operating margin was recorded as -37%
- The net profit margin was recorded as -35% for the latest quarter
- The price-to-earnings (PE) ratio of the NIO stock is -10.0
- The Return on equity for the company is -65% a result of negative net profit
- With low debt, the company has a low debt-to-equity ratio of 0.57
The Metrics have been calculated by financial statements, provided by macrotrends.net
Why is the NIO stock price rising?
During Mid-June a new outburst in the market about the Chinese government’s favorable policies towards the green energy business. The National Development and Reform Commission (NDRC) of China showed interest in bringing private investments in clean energy Since NIO operates in the same sector, t was a positive response from NIO investors, and the stock price started rising in an uptrend, and we will see the movement of the price later in detail.
NIO Stock Previous Price Action and Forecasting
NIO‘s Previous Price Action
The price of NIO was in a downtrend from making its last high in September 2022, However after reaching a low of $14.6 the stock started moving sideways with a cap of around $13.4 and a floor of an average of $9.
After consolidating till February 2023, the bears arrived and caused the price to fall higher, breaking the support made in November and December.
Although the price didn’t fall for too long, the news that is discussed above came into the market, causing investors to come in and hike the price.
NIO stock price prediction
Currently, the price has broken its resistance of previous months. Making volume-enabled supports, It is showing no signs of slowing down.
Supports and resistances: The NIO stock price is seen to continuously break the previous resistances and form new support levels which are backed by volumes in sight.’
Support level 1 is seen at $13.38 which is confirmed on the likes of Jan 2023 and December 2022. The second support can be seen at the level of $10.54 which is very unlikely to be broken as the historical supports are very heavy in volume.
Resistance 1 can be seen at the level of $16.5 which is very close to the current price, this price level has been seen to strike quite a number of times during the September of 2022. Although there is a bigger range and no firm swing candles at a common closer point which can make this resistance weak.
The second resistance is seen at the price value of $19.10 which doesn’t have quite the confirmation from the history.
The 1st support and resistance have created a consolidation zone in the chart, in which the NIO stock may be seen to consolidate if any breakout doesn’t arrive
Indicators
MACD
The MACD Indicators itself gives an NIO stock forecast as the signal line crossed the MACD line back on the 24th of July 2023 which has caused the indication of an uptrend in the market, after which the price rose continuously. Even now the gap between the MACD and Signal line is wide enough to push the NIO’s stock price upwards.
RSI
The RSI’s movement has been bullish, with the stock touching the 78th level, the price is in the overbought zone, as per the RSI some correction can be seen in the medium to long term.
EMAs
The Exponential Moving Averages are very close to each other as the 50 EMA is looking to surpass the 200 EMA. On 26th July the price action took the support of the 50 EMA and launched off which caused a bull trend in the market
Currently, the 50 EMA is at the level of $10.82 and the 200 EMA is at $11.53, if the cross-over happens then the NIO stock price will continue the bull trend.
What is the prediction of NIO stock?
The prediction will stand with the MACD being a leading indicator and the behavior of moving averages which are indicating the continuation of the uptrend. The price will have to break and confirm the level of $16.5 which is the first resistance. If the price bounces off it then it is likely to go down to support 1 which is having some volume to cushion the fall.
Conclusion
Nio Inc founded in 2014, is a listed automobile company that has its majority focus on producing and selling smart electric vehicles in the premium category,
The company operates in various countries like the Netherlands, China, Germany, and many more.
The Revenue for the last quarter was recorded as $1.5Bn with a negative operating income and net profit. the price was declining but after a positive news outburst, currently, the stock is in an uptrend
Technical conclusions
Support: $13.38, $10.54
Resistance: $16.50, $19.10
RSI: 51.24
50 EMA: $10.82
200 EMA:$11.53
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
