- NYSE:NIO dipped by 0.27% during a whipsaw session for the broader markets.
- Rival Tesla got back on track in May as China deliveries rose by 29% during the month.
- Nio’s stock has crossed through some key resistance levels as it continues to look for a bullish breakout.
NYSE:NIO has slowly started to break itself off from moving in sync with the industry leader Tesla ((NASDAQ:(TSLA))), which should be a welcome sign for Nio investors. Tesla has lost nearly 15% of its value year to date, compared to Nio’s loss of just 10%. The past week has been a different story as Tesla has gained less than 1% while Nio has outpaced the electric vehicle sector, adding 4% as the stock looks to break out. On Tuesday, Nio had a rocky session that saw shares end slightly lower to close the day at $43.56.
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Nio was definitely enjoying the bullish sentiment after it was reported last week that Tesla had lost a large portion of its global EV market share. Perhaps the market that matters the most to Nio is its domestic one in China, and Tesla just reported that its vehicle deliveries rose by 29% in May after slumping in April. It could just be that April was a minor blip along the way for Tesla, which could mean Chinese EV makers aren’t quite running away with their home market yet.
Is NIO a good stock to buy?
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There is a reason why many investors and analysts are once again bullish on Nio’s short term future. The stock recently crossed through the 21-day EMA as well as the 200-day moving average, which are both traditionally bullish signals. In its recent consolidation stage, Nio met resistance at the $44 range, which did act as a rejection point during Tuesday’s trading session.