Carried by the EV leaders and bullish investment sentiment in Hong Kong and China markets, the famous Chinese EV trio rebounded strongly during Friday's trading session. Let's look into the technical analysis and prediction for these stocks movement next week.
Chinese EV Trio - Nio Xpeng Li
Nio announced on Thursday that it entered into strategic cooperation with Lotus Technology on charging and swapping. The announcement was made at the 2024 Beijing International Automotive Exhibition. The two companies plan to carry out comprehensive and in-depth strategic cooperation in areas related to charging and swapping, including battery standards, charging and swapping technologies, battery asset management and operations, service network construction and operations, vehicle R&D and customization, and connectivity.
Nio daily chart
Technically, Nio successfully broke up from its downtrend line (drawn in Orange on the chart above) since early last week. Then, the stock began to rally, with a significant gain on Friday. For such, I am bullish for Nio $NIO Inc.(NIO)$
How about Xpeng? Xpeng has a very similar chart pattern as Nio. The share price plummeted since mid March after it broke down below the uptrend line. Until recently, last night to be exact, Xpeng stock successfully broke out from the downtrend line resistance. The breakout with gap up and big volume might represent a potential trend reversal for the stock. My prediction for XPEV will be the same as Nio, I believe Xpeng $XPeng Inc.(XPEV)$
Xpeng daily chart
Let's end with Li. As compared to Nio and Xpeng, Li Auto has a weaker chart, as the share price has not yet broken out from the orange downtrend resistant line. Moreover, it has a major neckline resistance at 26.53 to overcome as well. I will remain bearish for Li Auto $Li Auto(LI)$
LI Auto daily chart
How do you find the rebound in Chinese EV stocks recently? Do you still have your faith in Chinese stocks as most of them are suffering over the years? Come and share your points of view with us ya!
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Technical Analysis and Prediction for Chinese EV Stocks
NIO Inc. (NIO):
NIO successfully broke up from its downtrend line and began to rally, with a significant gain on Friday.
The strong bullish momentum is likely to continue, and the next target price for NIO is around $5.30 USD, which represents a potential 17% gain from the current price.
XPeng Inc. (XPEV):
XPeng has a similar chart pattern as NIO, with the share price plummeting since mid-March but recently breaking out from the downtrend line resistance.
The breakout, accompanied by a gap up and big volume, suggests a potential trend reversal for the stock.
The prediction for XPEV is also bullish, and it is expected to continue its upward movement next week.
Li Auto (LI):
Li Auto has a weaker chart compared to NIO and XPeng, as the share price has not yet broken out from the downtrend resistance line.
There is also a major neckline resistance at $26.53 USD that needs to be overcome.
The outlook for LI remains bearish until the share price breaks above the resistance levels mentioned.
Analysis Summary:
NIO and XPeng show positive technical indicators, with NIO having a stronger bullish momentum.
LI Auto's chart suggests a more cautious approach, as it has not yet shown a clear breakout.
It is important to consider the overall market conditions and news developments that may impact the Chinese EV sector.
Please note that the above analysis is based on technical indicators and historical price patterns. It is essential to conduct thorough research and consider other factors, such as fundamental analysis and market sentiment, before making any investment decisions.
Disclaimer: The above analysis and predictions are for informational purposes only and should not be considered as investment advice. Investing in stocks involves risks, and it is important to do your own research and consult with a qualified financial advisor before making any investment decisions.
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