Why NIO Inc. (NIO)’s Stock Is Melting Down -2.76% Today

Today’s big question for investors is, “what’s going on with NIO Inc. (NYSE:NIO) stock? Its price is nose-diving -0.13 points, trading at $4.53 levels, and is down -2.76% from its previous close of $4.66. The shares seem to have an active trading volume day with a reported 9801970 contracts so far this session. NIO shares had a relatively better volume day versus average trading capacity of 32.94 million shares, but with a 0.71 billion float and a 1.3% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for NIO stock indicates that the average analyst price target is $7.68 per share. This means the stock has a potential increase of 69.54% from where the NIO share price has been trading recently which is between $4.61 and $4.85. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $3.3.

The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Tesla Fires Sound Alarms About Electric-Car Battery Safety” and dated May 16, 2019.

Looking at the current readings for NIO Inc., the two-week RSI stands at 40.17. This figure suggests that NIO stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current NIO readings is similarly very revealing as it has a stochastic reading of 41.77% at this stage. This figure means that NIO share price today is being neutral.

Technical chart claims that NIO Inc. (NIO) would settle between $4.8/share to $4.95/share level. However, if the stock price goes below the $4.56 mark, then the market for NIO Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $4.47 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.03. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Citigroup raised their recommendation on shares of NIO from Neutral to Buy in their opinion released on April 04. BofA/Merrill analysts bumped their rating on NIO Inc. (NYSE:NIO) stock from Underperform to Neutral in a separate flash note issued to investors on April 04. Analysts at Goldman, made their first call for the equity with a Buy recommendation, according to a research note that dated back to March 07.

NIO equity has an average rating of 2.42, with the figure leaning towards a bullish end. 12 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 8 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while others rated it as a sell. 6 analysts rated NIO Inc. (NYSE:NIO) as a buy or a strong buy while 2 advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.