To The Moon

$U Power(UCAR)$ informed that they have entered into a framework strategic cooperation agreement with Quantum Solutions on May 31.

Under the agreement, Quantum Solutions with their deep understanding of Japan’s market and consumer needs, will be advising U Power on the selection and development of suitable EV models.

In return, U Power (UCAR) will provide Quantum Solutions with its battery-swapping technology, products, and compatible cloud service platforms as per its requirements.

Both companies will also plan to recruit other strategic partners in the field of new energy storage, such as battery developers.

They might form a joint venture in the future to further pursue their strategic cooperation.

This is a very positive strategic cooperation where both companies will be contributing their technology expertise.

Hence, I would think there might be a chance of a second surge today (02 June) based on what I observed in After Hours trading for U Power (UCAR).

U Power (UCAR) After Hours Trading on 01 June

If we look at how UCAR is trading after hours, there are still interest as 2.2M shares was traded. But the timing concentrate around 16:00 to 17:00.

If we look deeper, it looks like a lot of SELL volume. But we should not forget those BUY volume above $7.50.

This will be interesting to see as I would expect a Gap Up very quickly when premarket open.

Investors with shares might choose to sell, and I expect it will have a second surge today as the strategic cooperation should put UCAR and Quantum in a good position in Japan’s EV market.

U Power (UCAR) Trading View Bull/Bear strength behavior

We noticed that there are a pretty high amount of bear strength during the 16:00-17:00(EST) timing, this coincide with the many SELL volume we observe.

But towards to the close of the After Hours, we can see Bull strength picked up, I believe this might continue in pre-market today (02 June 23).

I look forward to a quick Gap Up in premarket before stabilizing for another big surge later towards 9.30am(EST).

U Power (UCAR) Technical Indicators

If I were to look at the RSI, ADX and CCI to determine whether there is a possibility of second surge for this stock, it look like this stock can be considered for a BUY today(02 June).

U Power Limited’s (UCAR) Relative Strength Index (RSI) is 8.41, creating a Buy signal.

U Power Limited’s (UCAR) Trend Strength Indicator (ADX) is 17.55, creating a Buy signal.

U Power Limited’s (UCAR) Commodity Channel Index (CCI) is -189.94, creating a Buy signal.

Summary

Like I have mentioned in most of my article, I will be watching the price action closely in pre-market, as analysis based on After Hours so far have worked well for me.

But there might be news opposing any positive events which lead to an earlier surge.

Do be cautious and do your own due diligence to check out this stock!

Appreciate if you could share your thoughts in the comment section whether you think UCAR will have a second surge today (02 June)?

Do like, share and comment on this article if you find this trading thought useful.

@TigerStars @Daily_Discussion appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.