Corner points drop to $22 target

The Nio stock price forecast has taken on a bullish dimension after Wednesday’s 5.99% surge that sent price activity to the upper boundary of the declining wedge pattern. This pattern has a bullish significance, hence the preponderance of the Nio stock price forecast on the upside.

Nio resumed production of its electric vehicles just days after announcing it would halt production due to strict shutdowns in Shanghai and other parts of China. The company recently celebrated the production of its 200,000th electric vehicle and announced agreements allowing customers registered for battery exchanges to opt out and buy their own batteries. The car’s delivery milestone, achieved in less than four years, consisted of an entire fleet of the flagship NIO ET7 sedan flagship vehicle.

The company plans to ramp up production of its electric vehicles and has embarked on a massive expansion of its battery charging and production facilities. However, the headwinds the company faces would be the global shortage of semiconductors. Nio share price is up 4.77% on the day.

Nio Share Price Forecast

The falling wedge on the 4-hour chart indicates a bullish outlook for Nio stock price. The upper edge of the wedge and resistance at 17.87 (10th March high) need to give way for the bullish forecast to actualize. The move measured from the breakout of the wedge should peak at the resistance barrier at 22.26 (2/31 March high).

This breakout move should top out the resistance barrier at 19.48 (March 21st low and April 20th high) if the completion of the measured move is reached. Additional hurdles at 24:00 (psychological barrier and April 5 high) and 24:96 (February 1, 2022 high) only become available if the forward move exceeds the completion point of the measured move.

On the other hand, the bears are hoping for a rejection at 17.87, followed by a move lower that breaks the support at 15.88 and the lower edge of the wedge. This scenario means the wedge would be invalidated, with 14.31 (14th March 2022 low) and 11.83 (31st July 2020 low) serving as additional targets heading south. Finally, 10.91 completes potential bearish pivots, being the site of a previous low on July 24, 2020.

Nio: 4 hour chart

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Karen J. Nelson