Nio Inc. (NIO) shares moved higher Monday after China's Ministry of Commerce announced a breakthrough agreement with the European Union on how Chinese battery-electric vehicle makers can navigate EU market access.

Here's what happened: China and the EU agreed on broad guidance that lets Chinese EV manufacturers submit price-undertaking offers, which could eventually replace the additional tariffs the EU has been threatening. Think of it as a framework for playing nice instead of getting into a full-blown trade war.

The Trade Deal Details

Under the agreement, the EU will publish a Guidance Document on Submission of Price Undertaking Offers. Each offer gets evaluated using the same legal standards, following non-discrimination principles and World Trade Organization rules. According to the Chinese Ministry of Commerce's Monday statement, this guidance should help Chinese exporters of passenger battery-electric vehicles address EU concerns in a more practical and targeted way.

The China Chamber of Commerce to the EU welcomed the consensus, calling it a "soft landing" in the EV dispute and suggesting it should boost market confidence. That's diplomatic speak for "we avoided something worse."

What the Charts Say

Technical traders might not be celebrating quite yet. Nio is currently positioned 2% below its 20-day simple moving average, 12.9% below its 50-day SMA and 21.1% below its 100-day SMA. That's bearish pressure across short and medium-term timeframes.

The relative strength index sits at 34.87, which is neutral but leaning toward oversold territory. Translation: momentum isn't strongly negative yet, but there could be room for a bounce if buyers show up.

There's a silver lining in the MACD indicator, which is above its signal line and indicating bullish momentum. That could provide support for an upward move, though traders should watch for any shifts that might signal a trend change.

Key levels to watch: support at $4.00 and resistance at $5.00. If the stock holds above support, we might see a reversal. Break below that level, and things could get uglier.

The bigger picture offers some comfort. Over the past 12 months, NIO has gained 20.44%, showing that despite recent struggles, there's still a longer-term upward trend that could cushion short-term volatility if the stock stabilizes above key support levels.

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