Nio share price faces downward pressure from chip shortage and Evergrande crisis
The Nio share price is trading lower and looks set for a second day of losses. This is due to the continued contagion of the market due to the Evergrande liquidity crisis which led to a massive sell off on the Asian and US stock exchanges.
Despite a good market outlook, Nio’s share price continues to struggle under the weight of the global semiconductor chip shortage. This shortage caused Chinese auto sales to drop 17.8% in August, marking a fourth consecutive monthly decline. This shortage has also affected vehicle sales of automakers Ford, Honda, Volkswagen and GM.
The liquidity crisis hitting real estate giant Evergrande continues to exert bearish sentiment on Chinese stocks. As a result, the Nio share price could face additional headwinds in the near term. The headline is down 0.11% at the time of writing.
Nio Share Price Outlook
The Nio share price is currently testing the 34.64 support level. If this pivot gives way, we could see the price approaching 32.50 as the next bearish target.
On the other hand, a rebound from current support could allow price to break through the barrier at 35.91. A lead following this move allows the bulls to aim for the resistance barrier 39.33. This area is where the trendline of the channel is. Therefore, we can expect 41.31 and 43.14 to become available once price crosses the upper edge of the channel and the 39.33 resistance level. 46.07 and 47.58 will become available as new targets if a price rally above 39.33 occurs.
Nio share price (daily)
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