Nio Inc (NYSE:NIO) is trading slightly lower, while Xpeng Inc (NYSE:XPEV) is moving higher on Wednesday, after each printed an inside bar pattern in consolidation on Tuesday.
Both China-based electric vehicle manufacturers broke down from bearish head-and-shoulder patterns on Monday, but bulls came in and bought the dip when the SPDR S&P 500 (NYSE:SPY) bounced up from the $420 level. This caused Nio to print a hammer candlestick on the daily chart and Xpeng to form a dragonfly candlestick. Both candlesticks indicate that at least the temporary bottom may be in for the stocks.
