3 Hot Chinese EV Stocks With Growing Sales

3 Hot Chinese EV Stocks With Growing Sales

Nio Inc. NIO, Xpeng Inc. XPEV and Li Auto Inc. LI all recently reported first-quarter sales, and all three companies reported growth in sales and deliveries.

Here's a technical look at Nio, XPeng and Li Auto stock. 

Nio Daily Chart Analysis: The daily chart above shows Nio stock is trading in a channel and may potentially be forming a head-and-shoulders pattern.

The stock is trading in a channel (red) between $30 and $60. These are levels the price has struggled to cross in the past.

The chart also looks to be forming what technical traders call a head-and-shoulders pattern. This bearish reversal pattern may move the stock back downward for a time.

The stock is also trading above the 200-day moving average, indicating the sentiment of the stock is most likely bullish. This indicator may also hold as an area of support.

XPeng Daily Chart Analysis: XPeng stock has been consolidating throughout the year in what technical traders may call a “pennant” pattern.

See also: How to Buy XPeng Motors (XPEV) Stock

A pennant pattern occurs when the stock price condenses between higher lows and lower highs. In theory, the price will continue to be condensed until one of the lines connected by the highs and lows is broken.

Following the break of one of these lines, the stock may see a stronger push in that direction.

Li Auto Daily Chart Analysis: The Li Auto daily chart also looks to be forming a pennant chart, similar to XPeng. 

The price has been condensed between support and resistance by the lines connecting the highs and lows. The stock will eventually cross one of these lines and potentially see a stronger push in the same direction.

What's Next: Bullish traders would like to see the stocks build up to resistance, break out of the resistance, consolidate and move higher.

Bearish traders would like to see the stocks fall through the support levels with some consolidation below and a move lower. 

For more information about these stocks, click here

Photo courtesy of Nio.

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