NIO Inc shares have been against the ropes this month after posting a disappointing fourth-quarter earnings report. The Chinese electric car manufacturer reported revenues of $1 billion which missed analyst estimates.
It’s only been one year since the company was saved from bankruptcy by a government cash injection. While the electric car maker produced and delivered a record amount of vehicles, investors have been banking profits after the more than 1,000% surge higher last year.
In the daily chart below, it’s clear to see the huge surge higher over the coronavirus pandemic period last year. However, so far this year, investors have exited the stock in a big way. From the earnings announcement at the beginning of the month, the price is already down more than 10%.
Get our Weekly Commitment of Traders Reports: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Source: Admiral Markets MetaTrader 5, #NIO.US, Daily – Data range: from May 19, 2020, to Mar 2, 2021, performed on Mar 2, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year data not available.
If the price can keep pushing lower, it may reach technical support at the horizontal line at ~ $39.16 which would mark a more than 20% fall from the beginning of the month. This area could also prove to be a buy zone for any long-term investors trying to build a position once again.
Currently, global stock markets are treading cautiously after a huge surge higher in bond yields at the end of February. This has caused fear from investors that borrowing costs for companies may rise, thereby hurting company profits. However, the fall in stock markets could provide interesting opportunities for long-term value investors.
Did you know that you can use the Trading Central Technical Ideas Lookup indicator to find actionable trading ideas on this index and thousands of other instruments across Forex, stocks, indices, commodities and more?
You can get this indicator completely FREE by upgrading your MetaTrader 5 trading platform provided by Admiral Markets UK Ltd to the exclusive Admiral Markets Supreme Edition! You’ll also receive a whole range of advanced trading tools such as correlation and sentiment indicators!
Start your free download by clicking on the banner below:
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following:
- This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
- Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
- With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
- The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.
- Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
- Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
- Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.