LI AnalysisPrice is on an uptrend, and is currently having a short-term retracement to the downside to mitigate the bullish POI at 32.78. We see a bounce from this bullish POI, but price is unable to close high within the day despite relatively high volume on 1 August 2022. We could see price continue upwards, mitigating the bearish POI at 37.13 before we see a down move. However, I'm leaning towards price taking out this bullish POI and filling the fair value gap at 28.22 before price goes higher
LIA/N trade ideas
Li Auto Rallies and Pulls BackMost Chinese stocks remain well below their 52-week highs, but not Li Auto.
Let's consider some of the patterns on the Beijing-based maker of electric cars and SUVs.
First you have the level around $33. It was the opening price on December 3 when news of Didi's delisting hammered Chinese stocks. LI briefly retested it on January 3 before stalling and proceeding to lose almost half its value.
The shares remained below that level through mid-June, when they broke out and continued on to a new 52-week high above $40. Yesterday the stock retested $33 and managed to close above it. The result was a hammer candlestick pattern.
Third, the 50-day simple moving average (SMA) recently passed above the 200-day SMA -- a potentially bullish "golden cross." Will trend followers target a pullback toward this SMA?
Finally, stochastics have dipped to an oversold condition.
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Li Auto - Losing Weekly Support?Looking for a confirmed close below weekly support to indicate a return to the large range and potential to fill the gaps below. This thing has had a huge run up in the midst of a global bear market. Looks exhausted on my higher time frame momentum indicators.
Initiated a short over the past couple of weeks, and admittedly before confirmation of a break of weekly support at $34.75. Average price $37.11. First take profit is at the $27.00 level. I will consider $31.00 (Volume Profile POC) when we get there as a more aggressive take profit. If the rest of the market is tanking, I will be more patient.
This is one to hold for a long swing trade. If there is a weekly close above $34.75 weekly range high, that is your risk management signal to look for an exit.
NYSE - SwingTrading: Buy Signal LIThe stock LI (Li Auto) on our watchlist crossed a low risk enty point and generated a buy signal, we have added LI to the JS-TechTrading portfolio.
SL is less than 5% (SL at 37.05), win target is > 10%.
LI has a high relative strentgh (IBD style) and broke out of a volatility contraction pattern earlier today under high volume. Until now, the price / volume action is great.
We have recommended to open an LI position to our clients in real-time earlier today.
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, $3.80/contract
LI So overall this trend on a daily looks phenominal. We had a huge channel we ping pong in from 16$-32$ for a while with the occasional wick up to the 37$ which gave us the most resitance
Currently we have been holding a flat support base from 36.30- and downtrendinf reistance roughly around 40.50$
Now currently on an hourly I see a large symetrical triangle formed. Support around 36.91 reistance 40$
We are sitting in support of it now with one fakeout we had today down to 36.40 flat support
The probalem for me is if we breakdown and lose that flat support 36.40,
The floor can fall out from under us pretty fast
Targeting 32-31$ as low as 28$
If the market contiues to sell off and LI cannot manage to Hold this lower support we may see a nasty drop. Be patient and wait for your confirmation but if this happens you best belive I will be there to jump on the short
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
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$LI potential high tight flag forming$LI has gained over 100% in 7 weeks and now flagging with a max correction value of 13%, making it a key contender for a high tight flag set up. Wait for price to break to close over the top of the flag pole, with volume, before jumping in - ideally, look for a close over $41.59
LI - Overshoot ShortLI has hit my potential SRZ Shakeout Reversal Zone for the overshoot ratios of two 3 pivot Fibonacci extensions (yellow and white trendlines).
This time i've just drawn a blue band without the fibs for a clean chart, but these show the 2 doundaries of the overshoot ratios.
LI has topped a few times in this area and so there will be heavy resistance from sellers and shorts here.
In addition there are 5 BIG gaps in this uptrend and it looks very unstable.
I am staggering into a short here and will hold till the gaps fill.
I will add more if/when i see a bearish candle with upper wick.
Not advice.
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.