The EV (electric vehicle) industry has become a hot topic for investors and traders as Tesla Inc. (TSLA) soars well past the magic $1,000 level. Traders have also piled into ADRs of Nio Inc. (NIO) . Let's check out the charts of this position in the Stocks Under $10 portfolio to see what all the fuss is about and whether it can last.
In the daily Japanese candlestick chart of NIO, below, we can see that the shares have soared sharply the past two months. There was another big percentage gain rally back in November to January but prices corrected lower into March.
Trading volume was heavy in January and February and the turnover has been heavy since late May. The On-Balance-Volume (OBV) line has been strong since October and tells me that buyers have been very aggressive. We can see a number of price gaps or voids on this chart telling us that buying has been very strong.
The moving averages have positive slopes but we do not have much price history to declare that prices are extended above these averages. The Moving Average Convergence Divergence (MACD) oscillator has been very bullish since late April.