Nio stock drops 5.52% as selling pressure follows first quarterly profit and technical signals

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Nio drops 5.52% to $5.57 today

Highlights

Nio achieved its first-ever quarterly profit, supported by surging production of proprietary Yangjian and Shenji NX9031 chips surpassing 550,000 units.
International expansion continued as Nio launched two new brands in Armenia and opened its first showroom in the country.
NIO trades in a bullish zone above key supports, but sustained selling pressure and mixed momentum indicators suggest likely consolidation between $5.35 and $5.85 in the near term.

First quarterly profit and chip milestone overshadowed by selling pressure

Nio reported its first-ever quarterly profit, which coincided with the announcement that its cumulative production of in-house developed chips has exceeded 550,000 units, mainly due to strong shipments of Yangjian and Shenji NX9031 chips. Earlier this week, Nio also entered the Armenian market by launching two brands and opening its first showroom in the country. Trading volume declined 26% from the average daily level during mid-week, though price action has remained under broader selling pressure.

Upward momentum persists but conviction weakens after intraday selling

Price action stays above the SMA-20, SMA-50, and SMA-200, reflecting sustained bullish structure across all main timeframes. Immediate support comes from the Ichimoku Kijun at $5.31, directly beneath current levels. MACD on the daily chart gives a Buy signal, while ADX remains Neutral, suggesting the trend lacks strong conviction. RSI at 64.22 and CCI at 91.05 indicate ongoing upward momentum that is not yet overextended, but Stoch RSI points to overbought conditions, with BBP confirming intraday buyer dominance. Despite broadly positive signals from momentum oscillators, today's session closed near the low on moderate volatility, with pronounced selling since the open.

Sideways consolidation likely with downside risk amid mixed signals

In the next five trading days, NIO is expected to fluctuate within a typical volatility band between $5.35 and $5.85. The probability of further gains is moderate, but the risk of a decline is somewhat higher, following the current indicator mix. The baseline scenario points to sideways movement as the price consolidates within this corridor. A sustained move above $5.85 could prompt renewed buying, while a breakdown below $5.35 support may increase volatility on the downside.

Viktoras Karapetjanc, Traders Union expert, sees Nio supported by strong fundamentals following its first-ever quarterly profit and significant chip production achievements. He believes bullish momentum persists above all key moving averages, but recent selling hints at ongoing consolidation. Macro news and solid sentiment support a constructive outlook in the near term. "I expect Nio to hold above $5.35 and potentially retest the $5.85 range, as improving fundamentals and market expansion continue to drive investor confidence."

Previously it was reported that Nio’s structural bullish trend was tempered by mixed momentum signals and potential downside risks. The current backdrop of sustained bullish alignment, new international expansion, and resilient chip production suggests traders should closely watch for a break outside the $5.35–$5.85 band, as such a move could signal the next decisive trend.

Source of Data: NIO Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.