Stock of the Day: NIO

NIO, the Chinese electric vehicle manufacturer, is starting to show a potential long-term turnaround. For months, the stock has been locked in a steady downtrend, held down by two key descending resistance lines. Those barriers defined the bearish sentiment, but in the past few weeks, something changed.

On the weekly chart, NIO formed a falling wedge pattern, a classical bullish setup. Two weeks ago, the price finally broke out of this wedge to the upside with a strong bullish candle. That breakout signals a shift in momentum, suggesting that sellers are losing control and buyers are regaining strength.

As long as NIO remains above the broken resistances, sentiment stays positive. The breakout from the falling wedge is a proper buy signal, and with the EV sector back in focus, the stock looks ready for further gains.