Nio Inc. (NYSE: NIO) is trading higher after CLSA analyst Soobin Park initiated coverage of the Chinese electric vehicle manufacturer with a Buy rating and $50 price target.

Nio stock was up 2.32% at $42.04 at the last check.

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Nio Daily Chart Analysis

• Nio stock looks like it was able to bounce at support and is moving back up toward resistance.
• The stock is trading below the 50-day moving average (green) and above the 200-day moving average (blue), indicating the stock is most likely facing a period of consolidation.
• The 50-day moving average may hold as a place of resistance on the chart, and the 200-day moving average is a potential area of support.

Key Nio Levels To Watch

• Nio stock looks to have three key levels that have previously acted as support and resistance.
• In the last six months, the stock was able to find support near the $32 area a couple times. 
• The stock is now working on creeping up to a previous area of resistance near $56. This is a stock level that has previously held as both resistance and support. 

• Beyond the $56 level, the stock has found resistance near $64. This level may hold as resistance again in the future.  

What’s Next For Nio?

Bullish technical traders would like to see the stock build up higher lows to the $56 level. A break above this line and the $64 level with some consolidation may let the stock make a further push.

Bearish technical traders would like to see the stock fall below the $32 level. If the stock is able to break below the support level and consolidate, it could see a further downward push.