Stage 2 Breakout in NIO

NIO is basically a Chinese Tesla. They are an electric vehicle manufacturer with seven models in production and have so far delivered around 350,000 units.

I don’t typically like Chinese stocks, but this one looks poised for a breakout higher.

The chart above shows my stage analysis for NIO stock on a weekly chart covering the last four years. As you can see, NIO is setting up for a new potential Stage 2 rally.

The first breakout into a new Stage 2 uptrend is, without question, the best place you can buy a stock.

If you drill down to a daily chart, you will see that NIO finally broke through its 200-day SMA which has acted as resistance for the entire downtrend.

If NIO can hold above its 200-day moving average and breakout higher, this could be a near perfect entry on this growth stock.


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