Nio Inc ( NIO ) shares are moving higher on Monday after China's Ministry of Commerce announced it has reached an agreement with the European Union on price undertakings for Chinese battery‑electric vehicle exports.

NIO stock is surging to new heights today. Why are NIO shares rallying?

What The EV Agreement Means For NIO

China and the EU have agreed on broad guidance for how Chinese EV makers can submit price‑undertaking offers, a step that could eventually replace the EU's additional tariffs, according to CnEVPost.

Under the agreement, the EU will publish a Guidance Document on Submission of Price Undertaking Offers. Each offer will be evaluated under the same legal standards, following non‑discrimination principles and WTO rules.

According to Monday's statement from China's Ministry of Commerce, the guidance will help Chinese exporters of passenger battery‑electric vehicles (BEVs) address EU concerns in a more practical and targeted way.

The China Chamber of Commerce to the EU (CCCEU) welcomed the new consensus, calling it a "soft landing" in the EV dispute and saying the outcome should help raise market confidence.

Nio's Technical Challenges: Can It Overcome?

Nio is currently facing a challenging technical setup, with the stock trading below key moving averages. It's positioned 2% below its 20-day SMA, 12.9% below its 50-day SMA and 21.1% below its 100-day SMA, indicating bearish pressure in the short to medium term.

The RSI is currently at 34.87, which is considered neutral but leans towards oversold territory. This suggests that while momentum is not yet strongly negative, there could be potential for a rebound if buying interest picks up.

MACD is above its signal line, indicating bullish momentum, which could provide some support for a potential upward move. Traders should watch for any changes in this momentum as it could signal a shift in the current trend.

Key support is at $4.00, while resistance is at $5.00. If the stock tests the support level and holds, it may indicate a reversal; however, a break below could signal further declines.

Looking at the 12-month performance, NIO has gained 20.44%, which shows that despite recent struggles, there is still a longer-term upward trend. This longer-term perspective could provide a cushion against short-term volatility if the stock can stabilize above key support levels.

NIO Price Action: Nio shares were up 4.74% at $4.85 at the time of publication on Monday, according to Benzinga Pro.

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