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Websim Analysis, March 22, 2022: LONG NIO

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

NIO delivered 6,131 vehicles in February 2022, an increase of 9.9% over the previous year. As of February 28, 2022, cumulative deliveries of ES8, ES6 and EC6 reached 182,853 vehicles. The business of the Chinese EV group is therefore confirmed as growing. The news is also good that the NIO stock is now present with its Class A common shares on the Stock Exchange of Hong Kong: a necessity probably linked to the issue of the possible delisting of the American ADR. In this regard, the best news comes from China as the Chinese government has announced never-before-seen monetary and fiscal policy operations to support the Chinese economy as well as announced to also support foreign-listed securities, such as NIO.

NIO [NIO] closed on Friday at $20.26 (-2.9%). Today, in the pre-trading, it is +3.2%. After the highs in the $70 area, the stock started a sharp decline that led it to break the 61.8% Fibonacci retracement at $26.28. The break confirmed NIO’s weakness by initiating further falls to the low of $13, with a loss from the highs of more than 80%. The first signs of recovery in strength have come in the last few sessions even if there is still a long way to go. On Friday, the stock broke the resistance of $20 at the end of the session with high volatility and a good dose of volumes. In pre-trading, we see profit taking today. Here, the more aggressive can already open LONG positions while the more conservative can wait for confirmation between now and the next few days to see if it will exceed $20. We point out that if you put together a weekly chart, bullish engulfing is evident and also confirmed by the volumes (see graph below). We point out that the bullish engulfing on the weekly is also present on indices on Chinese stocks, which is a very important signal for the sector.

We recommend going LONG on the stock, especially on the overcoming of $20 at the end, by buying the Leverage Shares 3X NIO ETP (ISIN: XS2399365472) also listed on Borsa Italiana for a short term targets of around $26. Alert/stop loss should be below $18 (daily closing). From an investment perspective, however, we highlight the stock tracker certificates with 1x leverage (ISIN: XS2337093871).


The information provided by Websim, a division of Intermonte SIM, a company authorised by CONSOB to provide investment services and registered in the Italian SIM under no. 246, are obtained from sources deemed reliable (of which the company is not able to guarantee the absolute completeness and accuracy) and in any case, if there are doubts about their reliability, this will be clearly indicated. The main purpose of the site is to provide a set of updated and accurate information, studies and analyses in compliance with the provisions of the «recommendations» in current legislation and does not represent a «solicitation to invest» pursuant to art. 1, paragraph 1, lett. t) of Legislative Decree 58/1998.

Your capital is at risk if you invest. You could lose all your investment. Please see the full risk warning here.

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Violeta Todorova

Senior Research

Violeta se unió a Leverage Shares en septiembre de 2022. Ella gestiona la realización de análisis técnicos, investigación macroeconómica y de acciones, y ofrece información valiosa que ayuda a la definición de estrategias de inversión para los clientes.

Antes de unirse a LS, Violeta trabajó en varias empresas de inversión de alto perfil en Australia, como Tollhurst y Morgans Financial, donde pasó los últimos 12 años de su carrera.

Violeta es una técnica de mercado certificada de la Asociación Australiana de Analistas Técnicos y tiene un Diploma de Postgrado en Finanzas e Inversiones Aplicadas de Kaplan Professional (FINSIA), Australia, donde fue profesora durante varios años.

Julian Manoilov

Marketing Lead
Julián se unió a Leverage Shares en 2018 como parte de la principal expansión de la compañía en Europa del Este. Él es responsable de diseñar estrategias de marketing y promover el conocimiento de la marca.

Oktay Kavrak

Head of Communications and Strategy

Oktay se incorporó en Laverage Shares a fines de 2019. Él es responsable de impulsar el crecimiento del negocio al mantener relaciones clave y desarrollar la actividad de ventas en los mercados de habla inglesa.

Él vino de UniCredit, donde fue gerente de relaciones corporativas para empresas multinacionales. Su experiencia previa es en finanzas corporativas y administración de fondos en empresas como IBM Bulgaria y DeGiro / FundShare.

Oktay tiene una licenciatura en Finanzas y Contabilidad y un certificado de posgrado en formación empresarial de Babson College. También es titular de una certificado CFA (Chartered Financial Analyst).

Sandeep Rao

Investigación

Sandeep se unió a Leverage Shares en septiembre de 2020. Está a cargo de la investigación de líneas de productos existentes y nuevas, clases de activos y estrategias, con un enfoque particular en el análisis de eventos y desarrollos recientes.

Sandeep tiene una larga experiencia en los mercados financieros. Comenzó en un hedge fund con sede en Chicago como ingeniero financiero, su carrera abarcó varios dominios y organizaciones durante un período de 8 años, desde la División de Prime Services de Barclays Capital hasta (más recientemente) el Equipo Index Research de Nasdaq.

Sandeep tiene una maestría en Finanzas, así como un MBA del Illinois Institute of Technology de Chicago.

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