XPEV - Half full or half empty?Dear subscribers, lets come together to discuss the massive movements in Xpeng... NYSE:XPEV
As the title of this article implies, today we are going to look at the different viewpoints about the future of Xpeng after the massive sell-off in the last days.
It can be clearly stated that the last wave 1-2 setup is invalidated with the breach of the resistance at 33.52$.
Based on the movements of the last few months, we have updated our chart setup to a very bearish scenario and do not expect a direct recovery in the coming days.
Due to the increased volatility, we estimate that we are in a downward wave 1-2 setup and currently we have witnessed a loss of -37% since the high at wave 2 (red).
Theoretically, the wave 3 target at $31.94 (1,618 extension) is almost reached, yet Xpeng can continue to fall and we expect an upcoming breach of the $30 level.
After that, we should start a small recovery based on wave 4, which will most likely bring us back to the region of 34$-36$.
After that, we estimate further losses as very likely and assume a break of the previous low at $22.73.
Predicting the future correction target is very difficult, but we view a correction to the $20 level as realistic.
There is a small chance, that the correction could come to an early end at this price levels, however the possibility for this is very low.
We would like to remind every subscriber that we as "Mendenmein-Capital" are clearly long term oriented and will continue to hold our "Acquisition #1"
If Xpeng should hit new lows, we will add more positions to our holdings and won't sell them for the next few years.
Keep in mind that this is a buy and hold position - unleveraged and without a stop-loss.
Current setup:
AVERAGE EXECUTION PRICE: 40.76$
STOP-LOSS: NONE
Disclaimer:
According to legal regulations, Mornau-Research is not a certified or legally recognized financial advisor and any transactions based on published content are at your own risk.
Mornau-Research cannot be held liable for any losses whatsoever according to the legal regulations in it's country of residence.
===============================================================================================================
If you have questions related to a specific stock or the Elliot Wave theory, feel free to contact us.
