NIO (NIO): key support level is located at $38.00

Electric car stocks have great performance in 2020.

Tech (1)

Electric car stocks have great performance in 2020. Chinese electric cars marker Nio Inc (NIO) soared more than 1500% in 2020 as investors expected that electric car would be a fast developing industry in next 10 year.

According to the China Association of Automobile Manufacturers, New Energy Vehicles sales volume reached 200,000 units in November, up 24.1% on month and 104.9% on year.

Recently, NIO (NIO) announced the pricing of the offering of 68M American depositary shares at $39.00. The raising capital will be used for research and development of new products sale and service network expansion and market penetration as well as for the general corporate purposes.

On a daily chart, the ADR share prices of NIO retreated from $57 and broke below the 20-day moving average. Investors had to notice that the relative strength index indicated a bearish divergence signal. However, the rising 50-day moving average remains acting as support. Besides, the previous low at $38.00 remains intact. Therefore, the technical outlook is still bullish but investors has to be cautious on recent price action. The support level would be located at $38.00 and $29.40, while resistance levels would be located at $48.10 and $57.00.


Source: GAIN Capital,TradingView

More from Equities

Disclaimer

This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.