Luckin Coffee: A Promising Company Likely to See Major Upside

Welcome to PrimeXBT’s professional analysis of the stock prices of Luckin Coffee Inc. which is a chain of coffee shops.

Fundamental Analysis and News:

Often labeled the Starbucks (NASDAQ:) of China, Luckin Coffee (NASDAQ:) had a strong 2019 thanks to large unit expansion, huge revenue growth, and significant margin improvements. Fortunately, all of those things will continue in 2020.

Luckin Coffee went from 2,000 to 4,500 coffee stores in 2019, and new management projects are set to hit 10,000 stores by 2021, so robust unit expansion will stick around in 2020. At the same time, each of those stores will experience huge comparable sales growth, backed by China's young consumers' love toward coffee consumption. Furthermore, all of this growth will come at a time when expense growth rates should lessen as the company's rate of expansion slows, so profit margins should meaningfully improve and losses should shrink.

In other words, 2020 will be an extension of 2019 in terms of the company sustaining big growth. As such, bulls will remain in control, and LK stock will continue to move higher.

Technical Analysis:

Luckin Coffee Inc. holds buy signals from both fundamental and technical analysis . Some negative signals were issued as well, and these may have some influence on near-term development.

The Relative Strength Index on the LK chart, for example, is flashing signs of bearish divergence. Its price's reached the resistance line of the ascending channel . On downwards corrections, there will be some support that’s coming from uptrend line and 23.6% Fibonacci — which is one of its major support levels.

  • Resistance Level: $46.8
  • Support Levels: $44.4, 41.5, 38.5, 33.3, 28.65

  • Volume: 29.515M
  • Day's Range: 41.61 — 45.73

  • Market Cap: 10 B

As always, be careful, and don't forget about capital & risk management.

Stay tuned for future technical analysis , news, updates, and more from PrimeXBT.
Jan 14
Trade active
Jan 16
Trade active
Follow PrimeXBT to stay updated on platform developments, trading competitions and more!

rubbish talk
+1 Reply
You are about a month late on this one.....
+1 Reply
Totaly Agree ..
+1 Reply
PrimeXBT jihadHejaz
@jihadHejaz, Thanks.
What do you intend to do in the meantime?
@PrimeXBT, doing some buy's and sell's
+1 Reply
Wow, thanks, it’s very interesting!
+1 Reply
PrimeXBT PeacefulWarrior
@PeacefulWarrior, We are very excited to make interesting content.
Home Stock Screener Forex Screener Crypto Screener Economic Calendar Shows How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Refer a friend My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out