Potential 20% upside for XPEV in the short/mid term
Updated
Fundamentals
BofA recently raised XPEV's price target from $43 to $51.1. This is very bullish for XPEV because more often than not these price targets are met in the short to mid term: news.yahoo.com/bofa-raises-xpeng-price-target-155928204.html
If you want to see more price targets you can check out this report (some are as high as $58 and $59): marketbeat.com/stocks/NYSE/XPEV/price-target/
Another thing to keep in mind is that the Chinese EV market is the largest EV market in the world by far and is growing exponentially. XPEV along with NIO and LI is one of the leading companies in the EV market in China. It has recently started entering the European market: bloomberg.com/news/articles/2020-12-16/xpeng-delivers-first-evs-to-norway-in-slow-going-europe-entry
I believe XPEV is poised to move higher in the short to mid term so if you are a trader I don't think there is much to be worried about but if you are a long term investor, it is worth knowing the long term risks as well, which you can learn more on this article: bloomberg.com/news/articles/2020-12-16/xpeng-delivers-first-evs-to-norway-in-slow-going-europe-entry
Technicals
Like other stocks on the EV market, XPEV fell hard from ATH the past month. After hitting about $74 a piece, XPEV seems to have found support around $37.5. There is a white closing marubozu candle on Dec 29th followed by two candles that closed higher consecutively, which signals a possible reversal or the current trend. Although the candles of the 30th and 31st are not very bullish (the one on the 31st is actually a doji) they are also not bearish. So they don't invalidate the white closing marubozu. RSI is starting to turn to the upside and MACD is also starting to curl up. Additionally, the two last candles found support on the 50-ema and broke above the short term trendline. These are all bullish signs. If XPEV can breakout above the 14-ema and 21-ema--which at the time of this writing is overlapping the stubborn $45.5 resistance--and the .618 fib level that has been strong resistance as well, it should be able to reach $51, a level that was tested 5 times the past few weeks but not broken. If/when we get there, we can reassess what the next move should be.
For those who want to jump in, this seems like a good level to start dollar cost averaging (DCA). If you are more conservative you can wait for a re-test of the trendline or 50-ema, which at the time of this writing are pretty close to one another.
I own XPEV and am looking to add a few more shares if the price keeps pushing up. If/when it reaches the $51 target I will reassess the charts and possibly take some profits.
***If you get anything out of this TA, please like and follow for future updates and more TA. Thanks a lot!***
***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
BofA recently raised XPEV's price target from $43 to $51.1. This is very bullish for XPEV because more often than not these price targets are met in the short to mid term: news.yahoo.com/bofa-raises-xpeng-price-target-155928204.html
If you want to see more price targets you can check out this report (some are as high as $58 and $59): marketbeat.com/stocks/NYSE/XPEV/price-target/
Another thing to keep in mind is that the Chinese EV market is the largest EV market in the world by far and is growing exponentially. XPEV along with NIO and LI is one of the leading companies in the EV market in China. It has recently started entering the European market: bloomberg.com/news/articles/2020-12-16/xpeng-delivers-first-evs-to-norway-in-slow-going-europe-entry
I believe XPEV is poised to move higher in the short to mid term so if you are a trader I don't think there is much to be worried about but if you are a long term investor, it is worth knowing the long term risks as well, which you can learn more on this article: bloomberg.com/news/articles/2020-12-16/xpeng-delivers-first-evs-to-norway-in-slow-going-europe-entry
Technicals
Like other stocks on the EV market, XPEV fell hard from ATH the past month. After hitting about $74 a piece, XPEV seems to have found support around $37.5. There is a white closing marubozu candle on Dec 29th followed by two candles that closed higher consecutively, which signals a possible reversal or the current trend. Although the candles of the 30th and 31st are not very bullish (the one on the 31st is actually a doji) they are also not bearish. So they don't invalidate the white closing marubozu. RSI is starting to turn to the upside and MACD is also starting to curl up. Additionally, the two last candles found support on the 50-ema and broke above the short term trendline. These are all bullish signs. If XPEV can breakout above the 14-ema and 21-ema--which at the time of this writing is overlapping the stubborn $45.5 resistance--and the .618 fib level that has been strong resistance as well, it should be able to reach $51, a level that was tested 5 times the past few weeks but not broken. If/when we get there, we can reassess what the next move should be.
For those who want to jump in, this seems like a good level to start dollar cost averaging (DCA). If you are more conservative you can wait for a re-test of the trendline or 50-ema, which at the time of this writing are pretty close to one another.
I own XPEV and am looking to add a few more shares if the price keeps pushing up. If/when it reaches the $51 target I will reassess the charts and possibly take some profits.
***If you get anything out of this TA, please like and follow for future updates and more TA. Thanks a lot!***
***THE IDEAS SHARED HERE ARE MY OPINION. THIS IS NOT FINANCIAL ADVISE TO PLACE TRADES. PLEASE DO YOUR OWN RESEARCH AND ANALYSIS BEFORE BUYING/SELLING STOCKS.***
Note
XPEV broke above the $45.5 level to reach $47.69 (about 11% up today) but is currently finding resistance on the .618 fib level. Momentum is bullish though as indicated by the Stochastic and MACD. It is also above the 14 and 21 emas. Getting close to the $51 target!Note
The 14-ema is holding on the daily. A re-test of the 50-ema is not out of question:Note
XPEV re-testing the downward trendline. In addition to this trendline, there is a confluence of support around this area: the 50-ema and the upward trendline are also converging here. I am looking to add more shares if this level holds:Note
A week later and there we have it kids: $51 on the mark!
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