Li Auto - No Shortage of Chinese EV

Feb 14, 2021

This one is starting look decent on the daily. Recent double bottom on RSI and MACD. Volume profile is noteworthy only in that the sellers are drying up. PA forming a nice ascending triangle with higher lows. That inspires confidence, especially against the upper trendline resistance. Looking to open before the inevitable squeeze as price action gets clamped by the EMA (20) and MA (50). I suspect that will give us a good bump in volume that could break above that major resistance level. From there, I suspect it will retest December highs. All of these EV's in China are looking at breakouts in the next week or two. Stay tuned.

Feb 14, 2021

Note

Ideally, price action will break below this pennant and give us a third touch of the lower ascending trendline:

Feb 14, 2021

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Might take as long as March to play out. It helps that the target for this pattern is the prior December high. Patterns like this seem like self-fulfilling prophecies.

Feb 14, 2021

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Looking to buy @ 31.50-32.50
Target: 47

Feb 16, 2021

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Broke below pennant as anticipated above and we saw a nice bounce on the lower support at 29.99 on the 5m charts. Opened a position inside the flag as soon as I saw this bull flag printing: