The Chinese EV has been struggling this year after reaching an All-Time-High last January at $66.99. Even with many catalysts during the last weeks – NIO Day last month with a new Model (ET5), new price targets, and European Expansion – the stock price didn’t reflected the company evolution amid struggles with Chinese Government fear from investors.
Yesterday NIO was the most traded stock of the Market with 130.37 Million of shares traded – the highest Volume on a day since March 26th and one of the best days of 2021. It’s more than twice the 50.2M that change hands on a typical day.
NIO rose above 17% to $33.04 intraday before pulling back to close at $32.42, up 14.8% from Wednesday’s close at $28.25.
As we can see on the data below, RSI Indicator – which indicates the Oversold and Overbought levels – NIO did a double bottom on the Daily Chart and jumped yesterday from there being still far from 70.00 Level – where it is considered an Overbought Stock.

For the final confirmation, NIO needs to break the descending area around $41 after being rejected two times last June and more recently, last september. Yesterday was an important day for the stock to bring again attention from the Market and the Volume it needs for breaking this Bearish Trend from All-Time-Highs.
2022 with the Chip Shortage problems easing seems the year for EVs. Tesla opening two new GigaFactories pointing to a 2 Million Delievery Goal for next year and all the other EVs increasing their deliveries numbers month after month will definitely make 2022 a year to pay close attention to the sector.

What Is the Relative Strength Index (RSI)?
The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100.
Traditional interpretation and usage of the RSI are that values of 70 or above indicate that a security is becoming overbought or overvalued and may be primed for a trend reversal or corrective pullback in price. An RSI reading of 30 or below indicates an oversold or undervalued condition.