Li Auto (‘LI’)Shares in Li Auto Inc (symbol ‘LI’) had a profitable second quarter with gains of more than 2o% while the company is currently at a staggering +83% compared to 1st of March. The company’s earnings report for the fiscal quarter ending June 2023 is set to be released on Tuesday 8th of August, before market open. The consensus EPS is $0.19 compared to the same quarter of last year at $-0.01.
‘The company is performing exceptionally well for the time being and has also outperformed its rivals Xpeng and Nio in car deliveries for July. Li Auto delivered the most cars in July with an increase of 227.5% year-on-year. The company may not be the ideal candidate in terms of dividend payouts but its balance sheet as of 31/12/2022 shows a ratio of assets to liabilities of 2:1. Also the current ratio of 245% further supports the narrative of a financially healthy company.’ said Antreas Themistokleous, an analyst at Exness
On the technical side the price has been trading in an upward movement since mid May and continues until the date of this report. The price is trading above the upper band of the Bollinger bands indicating that volatility is fueled up in the market while the Stochastic oscillator is in the extreme overbought levels for almost one month straight. This could mean that we might see a correction in the market before resuming the overall bullish trend.
The 50 day moving average is trading well above the 100 day moving average further confirming the validity of the bullish momentum
All in all the company seems to be at its best but even though “the trend is your friend” it is not very wise to jump on a trade when the share is near its all time high!