Li Auto Inc. Seeking Stability Amid Intense Market CompetitionLi Auto Inc. (NASDAQ: NASDAQ:LI ), a leading Chinese electric vehicle (EV) manufacturer, recently reported a sharp decline in profits for the second quarter of 2024, driven by higher production costs, price cuts, and increased competition. With demand for EVs weakening globally, the company faced substantial challenges that have significantly impacted its financial performance and stock price. This article delves into both the fundamental and technical aspects of Li Auto's current situation, providing a comprehensive outlook on what lies ahead for the company.
Rising Costs, Increased Competition, and Profit Pressures
Li Auto's financial results for the second quarter of 2024 revealed a year-over-year decline in net income by 52.3% to RMB1.1 billion (USD $151.5 million). The adjusted earnings per American Depository Share (ADS) fell 45% to RMB1.42 (USD $0.20), although both figures managed to exceed analysts' consensus estimates. However, the revenue growth of 10.6% to RMB31.7 billion (USD $4.4 billion) fell short of expectations. The company's CFO, Tie Li, acknowledged the "intense market competition" and high production costs as significant factors behind the declining profits.
Vehicle sales, which accounted for the bulk of Li Auto's revenue, increased by 8.4% from RMB28.0 billion in Q2 2023 to RMB30.3 billion in Q2 2024. However, the vehicle margin dropped to 18.7%, down from 21.0% in the same period last year, mainly due to a lower average selling price driven by product mix and pricing strategy changes. The gross margin also declined to 19.5% from 21.8%, reflecting the ongoing cost pressures.
Li Auto's operating expenses rose by 23.9% to RMB5.7 billion (USD $785.6 million), mainly due to higher R&D costs and employee compensation to support its expanding product portfolio and technological advancements. These rising costs, coupled with a decrease in gross profit, led to a 71.2% decline in income from operations to RMB468 million (USD $64.4 million).
Despite these challenges, Li Auto (NASDAQ: NASDAQ:LI ) is cautiously optimistic about the second half of 2024. The company expects the stabilization of its new Li L6 SUV production and the implementation of cost reduction measures to improve its margins and cash flow. Looking ahead to Q3 2024, the company forecasts vehicle deliveries between 145,000 to 155,000 units, with total revenues estimated to be in the range of RMB39.4 billion to RMB42.2 billion, representing an increase of 13.7% to 21.6% compared to Q3 2023.
Technical Analysis: Critical Levels and Potential Reversal Zones
From a technical perspective, Li Auto's stock has been under significant selling pressure. As of the most recent trading session, the stock fell 16%, with the price hovering around $17.58, reflecting a 17% decline. The Relative Strength Index (RSI) currently sits at 38, indicating an oversold condition that suggests further potential downside.
Li Auto's stock is at a critical juncture. A move towards the key support pivot at $12 could trigger a substantial sell-off, pushing the stock price lower and potentially leading to further market panic. On the other hand, if the stock manages to recover and surpass the block structure resistance at $24, it could signal a bullish reversal, encouraging renewed investor interest and potentially propelling the stock toward the next resistance level above $40.
The bearish outlook is primarily driven by the current oversold conditions and negative market sentiment. However, if Li Auto can stabilize its production costs, improve margins, and execute its growth strategy effectively, there is a possibility of a rebound. The next few weeks will be crucial as investors closely monitor the company's performance and market dynamics.
Conclusion:
Li Auto faces a challenging environment characterized by high production costs, intense competition, and fluctuating demand for electric vehicles. While its recent financial performance has been disappointing, the company's efforts to stabilize costs and improve margins in the coming quarters offer a glimmer of hope for a turnaround.
From a technical standpoint, the stock remains under pressure but could find support at lower levels, providing an attractive entry point for value-oriented investors. However, caution is advised, as a sustained recovery will depend on several factors, including broader market conditions, competitive positioning, and the successful execution of the company's strategic initiatives.
Investors should watch for signs of stabilization in Li Auto's margins and production costs, as well as the potential for a technical bounce if the stock can move above the key resistance level. Until then, the outlook remains mixed, with both risks and opportunities on the horizon.
Liautostock
Li Auto Inc. Reports First Quarter 2024 Financial Results Li Auto Inc, ( NASDAQ:LI ) the Chinese electric vehicle company, has reported a sequential decline in revenue and net income in its first quarter of 2024. However, CEO Xiang Li took a positive tone in the earnings report, despite the sequential decline in revenue and net income in Q1.
The company's first quarter saw an increase in vehicle sales by 32.3% from RMB18.3 billion in Q1 2023 and a decrease of 39.9% from RMB40.4 billion in Q4. Vehicle margin was 19.3% in Q1, compared to 19.8% in Q2 2023 and 22.7% in Q4. Total revenues were RMB25.6 billion, an increase of 36.4% from RMB18.8 billion in Q1 2023 and a decrease of 38.6% from RMB41.7 billion in Q4. Gross profit was RMB5.3 billion, an increase of 38.0% from RMB3.8 billion in Q1 2023 and a decrease of 46.0% from RMB9.8 billion in Q4. Gross margin was 20.6% in Q2, compared to 20.4% in Q2 2023 and 23.5% in Q4. Operating expenses were RMB5.9 billion, an increase of 71.4% from RMB3.4 billion in Q1 2023 and 13.1% from RMB6.8 billion in Q4. Loss from operations was RMB584.9 million in Q1 2024, compared with RMB405.2 million income from operations in Q1 2023 and RMB3.0 billion income from operations in Q4 2023. Operating margin was negative 2.3% in Q1 2024.
Net income was RMB591.1 million, a decrease of 36.7% from RMB933.8 million in Q1 2023 and 89.7% from RMB5.8 billion in Q4 2023. Non-GAAP net income was RMB1.3 billion, a decrease of 9.7% from RMB1.4 billion in Q1 2023 and 72.2% from RMB4.6 billion in Q4 2023. Diluted net earnings per ADS attributable to ordinary shareholders was RMB0.56 (US$0.08) in Q1 2024, while non-GAAP diluted net earnings per ADS attributable to ordinary shareholders was RMB1.21 (US$0.17) in Q1 2024. Net cash used in operating activities was RMB3.3 billion in Q1 2024, compared to RMB7.8 billion in Q1 2023 and RMB17.3 billion in Q4 2023. Free cash flow was negative RMB5.1 billion in Q1 2024.
Li Auto has launched several new models, including the Li MEGA, Li L Series, and Li L6, which offer enhanced product strengths and improved safety features. The company also published its 2023 Environmental, Social, and Governance (ESG) report on April 12, 2024, outlining its efforts to integrate sustainability and sound governance into its corporate strategies and daily operations.
Technical Outlook
Li Auto ( NASDAQ:LI ) is down 1% in pre-market trading. Since the second week of March 2024, the stock has been on a falling wedge pattern concurrently gliding reaching new support levels. NASDAQ:LI stock is about to reach the 1-month low pivot a move that will accentuate the bearish thesis.
Li Auto ($LI) Racing Higher.Li Auto ( NASDAQ:LI ) reported strong fourth-quarter earnings early Monday. The Chinese EV maker guided somewhat lower on Q1, but LI stock raced higher.
Li Auto Earnings
Li Auto earned 60 cents per ADS, up from 4 cents a year earlier. Revenue soared 130% to $5.88 billion. Analysts expected Li Auto earnings per ADS of 44 cents on revenue of $5.5 billion.
Li Auto already reported on Jan. 1 that it delivered a record 131,805 vehicles, with its cheapest EV, the L7, accounting for 52,552, or 40%.
Li Auto Outlook
The EV maker forecast Q1 revenue of $4.4 billion to $4.53 billion, up 66%-71% vs. a year earlier in local currency terms, though that's below analyst forecasts. Deliveries are expected to be 100,000-103,000, up 90%-96% vs. a year earlier but down from Q4's record 131,805. That's also under Wall Street targets.
Li ( NASDAQ:LI ) delivered 31,365 EVs in January, up 106% vs. a year earlier but down 38% vs. December. That implies February-March sales of 68,635-71,635.
China auto sales are typically weak in January-February. Sales tend to peak at year-end, while the extended China New Year holiday has a big impact on production and sales.
Li Auto ( NASDAQ:LI ) will report February sales on Friday, March 1, along with XPeng (XPEV), Nio (NIO) and several other China EV makers. EV and battery giant BYD (BYDDF) will report on March 1 or 2.
Li Auto Upcoming Models
Li Auto currently sells three premium SUVs, the L7, L8 and L9. All are extended range electric vehicles (EREVs), essentially a form of plug-in hybrid.
On March 1, Li Auto ( NASDAQ:LI ) will formally launch the Mega MPV, or minivan, its first fully battery electric vehicle (BEV). That had been pushed back from early in the year. The electric MPV, or minivan, segment is getting crowded, with the Li Mega joining the less expensive, but still premium, XPeng X9 and BYD's Denza D9.
Li also will unveil the 2024 versions of the L7, L8 and L9 on March 1. The automaker also plans to launch three more BEV models in the second half of 2024.
Li Auto Stock
Li Auto stock jumped 19% to 41.44 in Monday market trading. Shares are down 7% in 2024 of Feb. 23, but have rebounded strongly since hitting a seven-month low of 26.43 on Jan. 22.
The AVWAP from the June 2022 highs now belong to the buyers!A good long setup here with earnings out of the way. The stock gapped up on heavy volume after a good earnings report. This gap up also happened to be above the AVWAP from the June highs.
Currently the stock is consolidating after the strong run up from the $21 area all the way towards the $30 area.
In my opinion, the $26 - $27 range provides a good buying opportunity in anticipation of a move towards the $40 level.
Li Auto at 61.8% fib? Li Auto
Short Term
We look to Buy at 26.22 (stop at 24.22)
Further upside is expected although we prefer to buy into dips close to the 26.22 level. The medium term bias remains bullish. Downward pressure has continued and we are assessed as being in the corrective leg lower before the next rally. The bias is still for higher levels and we look for any dips to be limited. Expect trading to remain mixed and volatile.
Our profit targets will be 31.17 and 44.10
Resistance: 32.00 / 36.90 / 40.00
Support: 26.20 / 22.22 / 18.90
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
7/17/22 LILi Auto Inc. ( NASDAQ:LI )
Sector: Consumer Durables (Motor Vehicles)
Market Capitalization: $37.118B
Current Price: $38.45
Breakout price: $39.00
Buy Zone (Top/Bottom Range): $38.10-$36.15
Price Target: $40.50-$41.40 (1st), $47.30-$48.50 (2nd)
Estimated Duration to Target: 13-15d (1st), 54-58d (2nd)
Contract of Interest: $LI 8/19/22 40c, $LI 9/16/22 40c
Trade price as of publish date: $2.70/contract, $3.80/contract
LI ready for the next leg? Li Auto
Short Term
We look to Buy at 36.56 (stop at 34.78)
We look to buy dips. The medium term bias remains bullish. Downward pressure has continued and we are assessed as being in the corrective leg lower before the next rally. The bias is still for higher levels and we look for any dips to be limited. Expect trading to remain mixed and volatile.
Our profit targets will be 41.22 and 44.10
Resistance: 42.00 / 50.00 / 60.00
Support: 37.00 / 32.60 / 25.50
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
Li Auto goes from strength to strength. Here’s why! Li Auto is up a staggering 71% over the past month as the Chinese EV manufacturers continue to make gains despite Covid-19-induced disruption.
Li Auto (NASDAQ:LI) also known as Li Xiang, is a Chinese electric vehicle manufacturer headquartered in Beijing, with manufacturing facilities in Changzhou. The company’s share price dipped along with other growth stocks at the beginning of the year, but it’s now trading at an all-time high.
What was holding the Li Auto share price back?
Li, like its Chinese peers, saw its share price fall from over 140 HKD at the end of last year, to less than 70 HKD in March. Investors lost confidence in the company’s ability to continue delivering growth as China enacted a swift response to small outbreaks of Covid-19. Both commerce-centre Shanghai and capital, Beijing, were hit by new restrictions to prevent the spread of the virus.
Li Auto delivered 31,716 Li ONEs in Q1, representing a 152.1% year-over-year increase. This was consistent with the company's previous forecast of 30,000-32,000. However, due to Covid-19-induced lockdowns and disruption, deliveries for April 2022 fell. Only 4,176 Li ONEs were delivered in April, representing the lowest volume in recent months, and contributing to a negative year-over-year growth rate. Production recovered in May, with 11,496 Li ONEs delivered. The company lowered its guidance to 21,000-24,000 for the second quarter, although it seems likely that Li Auto will surpass that. The company was also forced to increase the price for its vehicles amid rising battery prices.
Production issues were felt across China’s manufacturing sector. Peer NIO (NASDAQ:NIO) even postponed the launch of a new vehicle amid suspended operations and a fall in sales.
Why has the Li Auto share price gained?
Li Auto’s gains over the past month are pretty outstanding. The stock is now trading for other 150 HKD. So, how did this happen?
Investors’ fears that Chinese manufacturing would be hampered for the foreseeable future have been alleviated. Despite new restrictions, Beijing appears to have taken a more business-friendly approach to managing Covid-19. 96.3% of industrial businesses in Shanghai have resumed operations, according to a recent update China's Ministry of Industry and Information Technology.
In early June, Li Auto said that, although its parts suppliers have resumed production, its own manufacturing facility wasn’t running at full capacity. However, May’s production data suggest that the firm is operating much closer to full capacity that it had done in April.
There has been more positive news for Li Auto too. The group saw strong trading volume on this week after Citigroup raised their price target on the stock from US$26.8 to US$58.6. Other brokers, including Barclays have recently backed the EV maker too.
Li Auto also unveiled its L9 model earlier this week. It was well-received, and investors will be glad to see the firm diversifying its offering. The EV will sell for 459,800 yuan (US$68,654) and Li Auto has already started taking orders. The group is targeting production of 10,000 units per month.
The L9 is Li Auto’s second model since its inception seven years ago. The L9, with an extended battery range, will be able to go as far as 1,315km on a single charge, according to the Beijing headquartered firm. “This is a full-size SUV with no match on the market,” Li Xiang, Li Auto’s co-founder and CEO, told a virtual launch event.
Doji Central on Li Li Auto
Short Term - We look to Sell at 23.77 (stop at 25.22)
Preferred trade is to sell into rallies. The medium term bias remains bearish. Price action has posted a Doji candle and signals a possible reversal of the recent trend. The bias is still for lower levels and we look for any gains to be limited. Expect trading to remain mixed and volatile.
Our profit targets will be 19.01 and 16.22
Resistance: 24.00 / 30.00 / 35.00
Support: 20.00 / 17.00 / 15.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
Li Auto: Scope to move lower? Li Auto
Short Term - We look to Sell at 22.46 (stop at 24.15)
Preferred trade is to sell into rallies. The medium term bias remains bearish. The trend of lower highs is located at 29.60. The bias is still for lower levels and we look for any gains to be limited.
Our profit targets will be 16.90 and 16.22
Resistance: 22.50 / 25.00 / 30.00
Support: 100.00 / 17.00 / 15.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
Li Support Breaking?Li Auto - Short Term - We look to Sell a break of 26.98 (stop at 28.34)
Trading within the Channel formation. The bias is still for lower levels and we look for any gains to be limited. Previous support located at 28.00. A break of 28.00 is needed to confirm follow through negative momentum. Risk/Reward would be poor to call a sell from current levels.
Our profit targets will be 22.54 and 21.60
Resistance: 29.00 / 33.00 / 35.00
Support: 28.00 / 25.00 / 20.00
Disclaimer – Saxo Bank Group. Please be reminded – you alone are responsible for your trading – both gains and losses. There is a very high degree of risk involved in trading. The technical analysis, like any and all indicators, strategies, columns, articles and other features accessible on/though this site (including those from Signal Centre) are for informational purposes only and should not be construed as investment advice by you. Such technical analysis are believed to be obtained from sources believed to be reliable, but not warrant their respective completeness or accuracy, or warrant any results from the use of the information. Your use of the technical analysis, as would also your use of any and all mentioned indicators, strategies, columns, articles and all other features, is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness (including suitability) of the information. You should assess the risk of any trade with your financial adviser and make your own independent decision(s) regarding any tradable products which may be the subject matter of the technical analysis or any of the said indicators, strategies, columns, articles and all other features.
Please also be reminded that if despite the above, any of the said technical analysis (or any of the said indicators, strategies, columns, articles and other features accessible on/through this site) is found to be advisory or a recommendation; and not merely informational in nature, the same is in any event provided with the intention of being for general circulation and availability only. As such it is not intended to and does not form part of any offer or recommendation directed at you specifically, or have any regard to the investment objectives, financial situation or needs of yourself or any other specific person. Before committing to a trade or investment therefore, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and (where available) read the relevant product offer/description documents, including the risk disclosures. If you do not wish to seek such financial advice, please still exercise your mind and consider carefully whether the product is suitable for you because you alone remain responsible for your trading – both gains and losses.
$LI setting up for a bullish rallyHello dear padawans. Today we are going to take a look at LI, the Chinese car company. If you read what analysts say you may be torn between buying or waiting on this one. Here I am just looking at the chart.
Overall the outlook is very bullish for LI. All indicators on the chart are bullish on the daily timeframe. Volume today was not exceptional but above average, which resulted in that nice green candle. Additionally, LI is on the verge of breaking out of the triangle accumulation pattern, which has formed over the past 3 months after ATH. Seems like a good amount of time to cool off and reset for a new rally.
The textbook way to trade this pattern is to wait for a breakout bullish from the triangle. I am anticipating a breakout so I already entered the trade. I accumulated recently on every touch of the triangle support so I am already seeing some green after today's bullish candle. Remember that although outlook is bullish it doesn't mean we will go to the moon tomorrow. In fact, there is nothing saying it won't go down although I would be very surprised if that happens. Also, if it breaks bullish be on the watch for throwbacks as they happen frequently on this type of pattern (BNGO just did that today after breaking out of the same pattern--hopefully it will bounce back up tomorrow). Bottom line: if you enter a trade, put a stop loss that matches your risk tolerance.
The dotted lines are the targets on the way up in case we go there.
Good luck and safe trades!
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***The ideas shared here are my opinion, not financial advise to place trades. Please do your own research before buying/selling stocks***
LI AUTO, Oversold at support & Bullish EngulfingAfter fibo 61.8% retrace LI tested the upper side of the ascending channel and retrecaed back to fibo 50%.
This area is acting as an important support and yesterday' formed a Bullish engulfing candle. If we close in green today the engulfing will vallidate and it will either test the next fibo at $40 or the upper channel. If it cant break that expect a correction back to 38.2% or $35 area.
Put your stop below yesterday's wick just in case.
LI 10% up; next target $37As I have been saying the past couple of weeks, after the hammer candle on the weekly chart and the close with a bullish candle last week, LI was poised to go higher. I have made good money trading the support and resistance all along as you can see from my previous charts and updates. I have accumulated a very good amount at an average price of $33.33, which would put me in a very good position if we keep rallying. That is why we buy the technicals when a stock finds support and wait patiently for these rallies. If you are not in yet, wait for a re-test of the strong $37 resistance. If LI is able to close above, you can buy and place a stop loss strategically below the $37 so you minimize your risks. Buying now would be FOMO in my opinion because there is nothing to anchor your entry against. Now to the moon!
Safe trades!
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***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.***
After the hammer LI closes the week with a nice bullish candleLast week LI closed with a hammer candle, which signals reversal if confirmed by the next candle. LI also closed above the resistance trendline. The candle also has more volume than the previous 4 candles, which is very bullish.
Despite the loss in the afternoon today LI closed with a strong bullish candle. The candle peaked with 26% gains. There was some selling pressure but that may be related to COVID and news related to unemployment numbers and stimulus bumps. We still closed the week with 17% gains.
Now we need to keep monitoring next week but this week's candle is what we wanted to see. I traded LI a few times this week for huge gains as you can see on the updates on my linked chart. I sold my shares one more time this morning when the price peaked and got back in at an average price of 34.87. I am also happy we closed the day (thus the week) above the stubborn $33-$34 resistance, reason why I bought back in.
Safe trades, everyone!
***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.***
Li broke out above $33 resistanceLi found support on the 21-ema and on the third consecutive time of asking it finally broke above of the $33 resistance. As you can see from past price action, the $33-$34 zone has been a strong resistance level for quite sometime now. Stochastic and MACD look healthy and curling up and I believe LI is poised to go higher but I took some profits at this level. If it retraces to the 21-ema I will add more shares with a tight stop loss.
***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.***
LI AUTO INC printing a hammer on the weeklyThere isn't enough data on LI AUTO INC to make any significant analysis on the weekly chart but it is possible to see a hammer candle, which could mean a potential reversal depending on what the next candle prints. A green candle that closes above the hammer high would confirm the reversal. Ideally, the confirmation candle should be formed on strong volume to support the reversal. This is a weekly chart so we would need to watch the price action this whole coming week.
***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.***