Nio stock price has done well in the past few days as investors remain optimistic about Chinese companies. It rose to a high of $5 on Monday, and $5.45 after the company reached a battery swap deal with CATL. The surge happened a few days ahead of Nio’s financial results.
Analyst sees Nio stock price soaring to $12
A pundit on X believes that the Nio share price may soon surge to $12. That would be a big move, considering that the coin was trading at $5.45.
The analyst used the popular XABCD chart pattern on the daily chart. He connected the first leg by linking the highest point in 2023 with the lowest point in April last year. The second leg connected the highest point in October last year, while C was the YTD low. He estimates that the target will be $12, up by about 130% above the current level.
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Nio share price technical analysis
The analyst’s bullish outlook is in line with our recent Nio forecast. The daily chart shows that the Nio share price has bounced back after falling to a low of $4 this month.
This rebound happened because of it was an important support level since it connected the lowest swings since April last year. It bounced back above the trendline when it retested it in September last year.
There are signs that the stock has formed a triple-bottom pattern whose neckline is at $7.72, its highest level in September last year. A triple-bottom is one of the most bullish patterns in the market.
Nio share price has moved above the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) and the MACD indicators have all pointed upwards.
Therefore, the most likely scenario is where the stock jumps, possibly hitting the neckline at $7.72. This view will become invalid if the Nio stock drops below the ascending trendline that connects the lowest swings since April.
Possible catalysts for the Tesla rival
There are several catalysts that will push the Nio share price higher in the near term. First, the company has announced a partnership with CATL, a leading battery maker, on swapping technology. CATL will help Nio in developing the battery-swapping network using its Choco-Swap technical standard.
Unlike other EV companies, Nio focuses on making vehicles that embrace battery-swapping technology. Drivers move to a battery swapping station and do the swapping process in a process that takes just a few minutes. The benefit is that it saves Nio drivers time since battery charging often takes minutes.
The other potential catalyst for the Nio stock price is the upcoming results, which are scheduled later this week. These results are expected to show that Nio’s business continued doing well in the last quarter.
The estimate is that its revenue rose by 18% to 20.19 billion CNY, bringing the annual figure to 68.45 billion CNY. Nio’s annual revenue will then jump to 97.65 billion CNY in 2025, making it one of the fastest-growing companies in the EV industry.
Nio will likely make progress on profitability. Analysts anticipate that its earnings per share (EPS) will be 2.36 CNY, an improvement from the 2.81 CNY it lost in the same period a year earlier.
The annual EPS will be a loss of 9.47 CNY, better than the 2023 loss of 10.87 CNY. It will then move to 7.6 CNY next year.
The other catalyst for the Nio stock price is the fact that the Chinese economy is doing well. Data released on Monday showed that Chinese fixed asset investments, retail sales, and industrial production improved in February.
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