Shares of both Lordstown Motors Corp. (NASDAQ: RIDE) and NIO Inc. (NYSE: NIO) may be in trouble. Each appears to be breaking important support. This could set the stage for rapid and large moves lower.
Support is a large group of buyers looking to pay the same price. At support levels, there is more demand than supply. This is why selloffs end when stocks reach them.
Shares of RIDE found support at $7 in May and a rally followed. But now this support appears to be breaking. This means the buyers are finished. This demand leaving the market could be bearish for the stock.
The $43 level has been important for Nio. It was resistance in April, and it was support over the last two weeks.
But this support may have broken. Nio closed at $41.84 Wednesday.
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