An explosive rally has unfolded in EV leader Tesla (TSLA) following a breakout from a triangle pattern, featured here in early August. The strong gains look set to continue for TSLA from a technical perspective, noting the stock is far from overbought territory per the monthly stochastics, and the upper boundary of a secular uptrend channel puts resistance above $500. (Read about why Tesla is jumping Monday on a big insider purchase from Elon Musk here .) The bullish action in TSLA leads us to the charts of other EV companies, such as China-based NIO (NIO) , as another way to benefit from the sector’s momentum. NIO has advanced from a long-term basing phase after having established a major low in April alongside the U.S. equity market. The subsequent breakout lifted NIO above key resistance from the weekly cloud model, a long-term trend following tool denoted by the shaded area on the chart. This marks a bullish reversal, and the new uptrend is supported by positive intermediate-term momentum per the weekly MACD indicator. The base breakout in NIO acts as a bullish long-term catalyst for the stock, both in absolute and relative terms. The relative strength ratio versus the S & P 500 Index (SPX) now points higher above its 12-month moving average (MA). The monthly MACD points higher, as well, and a recent oversold upturn in the monthly stochastics enhances a counter-trend signal logged by the DeMARK Indicators in April. Taken together, the indicators are supportive of 6+ months of upside follow-through. Should NIO decisively clear resistance at $7.00 derived from former support at the mid-2023 low, that would be another positive technical catalyst for the stock, noting the next big hurdle on the chart is a 50% retracement level at $9.60. Support for NIO can be gauged by the weekly cloud model, which sits at $5.36 through year-end. Because this level is well below current levels, and because EV stocks tend to be more volatile than the broader market, risk management is warranted via a percentage-based stop-loss discipline. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (Please note the authors of this article disclose that, as of the date of this publication, one or more owns TSLA.) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer. Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC (“Fairlead Strategies”) for informational purposes only. This material is for illustration and discussion purposes and not intended to be, nor construed as, financial, legal, tax or investment advice. You should consult appropriate advisors concerning such matters. This material presents information through the date indicated, reflecting the author’s current expectations, and is subject to revision by the author, though the author is under no obligation to do so. This material may contain commentary on broad-based indices, market conditions, different types of securities, and cryptocurrencies, using the discipline of technical analysis, which evaluates the demand and supply based on market pricing. The views expressed herein are solely those of the author. This material should not be construed as a recommendation, or advice or an offer or solicitation with respect to the purchase or sale of any investment. The information is not intended to provide a basis on which you could make an investment decision on any particular security or its issuer. This document is intended for CNBC Pro subscribers only and is not for distribution to the general public. Certain information has been provided by and/or is based on third party sources and, although such information is believed to be reliable, no representation is made with respect to the accuracy, completeness, or timeliness of such information. This information may be subject to change without notice. Fairlead Strategies undertakes no obligation to maintain or update this material based on subsequent information and events or to provide you with any additional or supplemental information or any update to or correction of the information contained herein. Fairlead Strategies, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs, or claims for your reliance on this material. Nothing herein is, or shall be relied on as, a promise or representation as to future performance. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Opinions expressed in this material may differ or be contrary to opinions expressed, or actions taken, by Fairlead Strategies or its affiliates, or their respective officers, directors, or employees. In addition, any opinions and assumptions expressed herein are made as of the date of this communication and are subject to change and/or withdrawal without notice. Fairlead Strategies or its affiliates may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different from or adverse to your interests or inconsistent with the advice herein. Any investments made are made under the same terms as nonaffiliated investors and do not constitute a controlling interest. No liability is accepted by Fairlead Strategies, its officers, employees, affiliates, or partners for any losses that may arise from any use of the information contained herein. Any financial instruments mentioned herein are speculative in nature and may involve risk to principal and interest. Any prices or levels shown are either historical or purely indicative. This material does not take into account the particular investment objectives or financial circumstances, objectives or needs of any specific investor, and are not intended as recommendations of particular securities, investment products, or other financial products or strategies to particular clients. Securities, investment products, other financial products or strategies discussed herein may not be suitable for all investors. The recipient of this information must make its own independent decisions regarding any securities, investment products or other financial products mentioned herein. The material should not be provided to any person in a jurisdiction where its provision or use would be contrary to local laws, rules, or regulations. This material is not to be reproduced or redistributed absent the written consent of Fairlead Strategies. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
