NIO Gains Attention as Stock Enters Deep Oversold Zone on Daily Chart

NIO shares are drawing renewed attention after entering a deeply oversold zone on the daily chart. The stock has slid into an area where it historically staged some of its strongest rebounds. This follows extended weakness, with price now testing levels similar to past turning points.

Every previous entry into this oversold territory resulted in sharp recoveries, typically ranging between 50% and 110%. The chart shows these earlier reversals across multiple years, with strong upside moves following technical exhaustion phases. Notably, those rebounds happened when NIO had weaker fundamentals and was far from profitability. With the stock trading near $5.50 and sentiment showing deep pessimism, the current structure mirrors prior bottoming patterns.

NIO’s fundamentals have been improving quarter by quarter, supported by reduced losses and operational progress. The company may be just one quarter away from approaching profitability if trends continue. Based on this outlook, NIO could trade above $16 by Q1 if the technical setup unfolds like past cycles. Repeated oversold signals have historically aligned with aggressive rebounds, and current conditions appear consistent with those scenarios.

This matters because the combination of technical capitulation and improving fundamentals may shape broader sentiment toward the EV market. A strong reaction from current levels could influence sector confidence as EV manufacturers navigate valuation resets and demand uncertainties. If NIO repeats its historical pattern, it may signal a broader momentum shift across the industry.

source: Pax