$Nio correction aheadNIO Inc. Sponsored ADR Class ABATS:NIOfabiandebruijnAfter a strong rally, NIO has now reached the 0.786 Fib level (measured from the September 2024 high to the April 2025 low). I believe a correction here is both logical and healthy. NIO could retest the $5.92 area, which has historically been an important level—acting as support in 2018 and resistance in 2024. This is also the 0.618 Fib level which is considered a crucial level. During the recent rally, NIO surged past this level with strong volume. I expect some profit-taking and a potential revisit of the sub-$6 range. I have outlined three possible scenarios: Green → the most optimistic outlook Orange → the most realistic outlook Red → a more cautious, yet still optimistic scenario Since NIO currently has relatively low institutional ownership, I expect the stock to remain quite volatile. This makes the orange scenario, in my view, the most realistic. In addition, September is approaching—a month that is historically weak for stock performance. On September 2nd, NIO will present its earnings. Recent optimism, driven by stronger-than-expected delivery numbers and an upgraded valuation from J.P. Morgan Chase, has caused the stock to soar. However, with earnings coming up, we could see a classic “buy the rumor, sell the news” reaction. Despite expecting a near-term correction, I remain bullish on NIO over the long run. The company continues to expand its lineup, deliveries are improving, and institutional sentiment is slowly turning more positive. In my opinion, pullbacks into strong support zones like $5.92 offer opportunities for accumulation rather than reasons for panic. This is my first published idea, and I would greatly appreciate your feedback. I wrote the original text myself and used ChatGPT to refine it for better readability, since English is not my first language.