NIO stock is lower again in premarket trading.
NIO breaks $40 in Monday’s premarket session.
NIO has been falling since the results last week.
NIO shares are down again in Monday’s premarket as some sad news hits the stock in relation to a driver fatality. The Securities Times which is a Chinese publication is reported as stating that Lin Wenqin a Chinese entrepreneur died while driving a NIO vehicle on Friday. Reports are that the vehicle was on autopilot but NIO has denied this according to CNEVPOST. CNEVPOST is a Chinese Electric Vehicle website. Benzinga has also covered the story saying the news is leading to more calls for self-driving safety regulations. NIO stock has been hit hard by the news as investors worry over this emerging technology and autopilot capability. It is not just NIO that autopilot concerns have been limited to with other manufacturers also having issues with such a new technology and drivers too needing to stay alert as autopilot is not the fully autonomous version that aircraft uses.
NIO shares are lower by over 4% in Monday’s premarket on the back of the sad news. The shares are trading below the psychological $40 level at $39.15.
NIO key statistics
|Market Cap||$69 billion|
|Enterprise Value||$56.1 billion|
|52 week low||$10.46|
|52 week high||$66.99|
|Average Wall Street rating and price target||
NIO stock forecast
NIO remains in a bearish downtrend as we have been saying for the last number of weeks. The trend is a classic series of lower lows and lower highs with $47.39 the upside pivot to break to set a higher high and end the trend. to the downside holding the pivot at $38.66 would be the first sign that bulls may be defending things and refusing a lower low a small bullish sign.
Breaking $38.66 opens the door for a move to our support zone at $32 which is where NIO stock stabilized and took off from back in May. Our strong support zone though is at $28 as the volume is greater here. The Moving Average Convergence Divergence (MACD) has also crossed into bearish territory.