Nio Stock hits a critical level: what now? -NIO (NIO)

When it comes to stocks, some price points are more important than others. And actions of NIO inc. (NYSE: NIO) just hit one.

In April, the stock hit resistance when it hit the $ 43 level and a sell off followed. That resistance broke in June and stocks rose.

When this happened, many investors who sold their shares for $ 43 regretted their decision. A number of them decide to buy back their shares, but they will only do so if they can get the same price they sold at. As a result, they place their buy orders at $ 43.

See also: Nio Stock Holds Key Support, But Flashes Bearish Signal

If there are enough of these buy orders, it will form support at $ 43. This could support the stock and could even cause it to rebound.

If there is not enough support, the level will break and Nio could make another big move lower.