I had a close watch on XPEV in late 2020 after it dropped from its all-time high. The stock ultimately saw a breakout on January 12, followed by a vital retest of the 20-day EMA and 50-day SMA on January 15. However, the move was hammered by a broader sell-off that was ruthless to the EVs. Personally, I think bullish sentiment is returning to the sector. However, from a technical point of view, I do not rule out that short-term headwinds may slow down the rally.
The XPEV ticker reappeared on my radar a couple of days ago after the company reported revenue growth in the fourth quarter of 2020. Looking at the technicals, volume looked promising, and my Delta-RSI momentum oscillator hinted at running out of the downside trend. During yesterday's premarket, the shares broke out of what I see as a narrow downside channel. However, the US session eventually sent them back to retest this zone.
Today I will be watching to see if the bulls manage to push XPEV above the monthly S1 Fibonacci pivot level ($32.27; SM1 on the chart). If that happens, I will consider going long with the 20-day EMA being my intraday target, followed by a monthly pivot of $39.39 (PM).
On the downside, a break below yesterday's low will result in a return to the channel and put the Fibonacci SM2 pivot level followed by the channel center line in play.
Comment
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Yesterday XPEV tested the 20-day EMA after hours. It is now pulling back amid broader market concerns. Let's see if it can hold the SM1 level. If not, we might want to see the retest of the SM2 / previous diagonal resistance zone.
Thanks for the analysis! A ride to the declining MA seems highly likely. Does it break above it then 45.89 will soon be in sight. If you zoom out to the weekly chart then the next Fib resistance (0.618) is 39.08. After that 45.89, 52.69, 61.12.
The 0.5 fib resistance on weekly chart is in my opinion the target (45.89). The 0.5 Fib level is always strong support or resistance.
sigmoid1
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Feeling bullish for tmrw?
tbiktag
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@sigmoid1, I'll be certainly watching it. After today's big run I want to see it breaking above and holding the 20-day EMA.
The 0.5 fib resistance on weekly chart is in my opinion the target (45.89). The 0.5 Fib level is always strong support or resistance.