NIO is currently trading at 5.13, positioned at the lower boundary of a descending channel. Following a significant bearish movement, the stock is demonstrating a potential reversal, having closed above the critical 5.10 support level. This is evidenced by a series of green candlesticks, indicating increased buying pressure. The immediate technical objective for NIO is to reclaim the 5.37 resistance. A successful breach of this level could lead to a test of the channel's upper resistance, observed around 6.07. Conversely, failure to sustain above 5.10 and a subsequent break below 4.46 would signal further downside, potentially invalidating the nascent bullish sentiment. Broader market sentiment is also considered, with IWM, a low-cap sector ETF, currently at 257.80 and demonstrating strong bullish momentum, having surpassed its all-time highs of 258.01. This indicates a favorable environment for low-cap stocks like NIO. The target for IWM is projected to be 260.00, with a critical support at 251.65. SPY, representing the overall market, is trading at 689.17, nearing its all-time high of 689.70. While SPY is showing resilience, it is still battling to definitively break past its all-time high, with a target of 695.00 and a fail bound at 670.00. The analysis suggests that increased buying volume in NIO is crucial to confirm the bullish reversal and capitalize on the positive broader market trend.