Chinese Stocks - Earnings Release

As we can observe this week, it will be a big event for Chinese stocks as most of the major or hot companies are going to release their earnings this week! It's hard to guess or predict the trend after earnings but we can analyse from the view of technical trend.

Without doubt, Chinese stocks showed strength in rebound for the past few weeks, indicating a trend reversal for most of the stocks after being downtrended for the past 2-3 years.

Let's start with the two EV makers, Xpeng and Xiaomi in which the latter is a new joined player in the EV market. 

Xpeng

Xpeng is one of the famous Chinese Trio. The company stock starts to rebound since early February. As we can observe from the chart below, drawn in blue line, an obvious uptrend is formed and valid until now. An uptrend continuation is to be expected unless the earnings is surprisingly bad. I still trust on the technical analysis and a bullish vote for Xpeng $XPeng Inc.(XPEV)$  .

XPeng daily chart

Xiaomi

Another new EV player in the market! Exciting with the new model that will be launched very very soon. For Xiaomi, the share price surged high last week with a green solid candlestick after announcing its first EV model. The share price pullbacked for 2-3 days with low volume and it rebounded this morning with is a bullish sign $XIAOMI-W(01810)$  . Also, all the EMA lines are facing upwards, signifying a strong bullish pattern for Xiaomi. I believe the recent earnings release will push the stock higher! 

Xiaomi daily chart

PDD

The e-commerce company was doing very very well in the business for the past quarters. I believe the earnings will continue to be positive $Pinduoduo Inc.(PDD)$  this week. Technical wise, the stock pullbacked and filled the gap up happened last year after the earnings. Last week, the stock broke the neckline support around 120 USD but was able to stand back to the support line after few days. The bottom is probably here and a strong rebound is to be expected. I believe this will be boosted by a strong earnings this week. 

PDD daily chart

Tencent

How about Tencent? One of the big giants in China. The chart is relatively weak for Tencent as compared to the other Chinese ADRs. Nothing much can be observed through is technical chart, currently it is more likely to be a consolidation phase. Personally, I believe Tencent has been undervalued for a long period and I think the rebound will be very soon and strong especially if $TENCENT(00700)$  releases a great earnings this week. Most importantly, it has to break through the EMA200 trendline to stay attractive for technical investors.

Tencent daily chart

Meituan

Last but not least, we will end the review with Meituan. Personally, I feel this stock has the strongest and most bullish technical chart among all the stocks shared earlier. A clear solid uptrend (drawn in blue) is formed since early February. Moreover, the steep angle of the uptrend line shows a real bullish trend for$MEITUAN-W(03690)$  . Now it is near to close the previous gap down formed during the previous earnings release. As a technical person, I do believe that share price always reflects the company situation few months in advance. Therefore, this incoming earnings will be great like most of the Chinese companies, which may help to push the stock higher! 

Meituan daily chart

How do you think about this week Chinese ADRs earnings result? Which companies you support and invest in? Let's fasten our seat belt for their booming results, hopefully boom in the positive direction haha. 

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