So in the last 3 days in particular , XPEV the Chinese electric vehicle maker, has been exploding up, and there are many reasons to this which we will cover here in a moment but as an investor who is heavily invested in XPEV this causes me reasons for concern. In a lot of the cases (excluding Tesla), when we see a meteoric rise such ass XPEV and NIO had in the last few days, this will mean a lot of investors that don’t really analyze the company properly and just jumping in the hype – but these are usually short term investors who are looking to make a hit and run. For me as a long-term investor in the EV market that means bad news.
A bit of Technical: IMPULSE WAVE - positive sentiment causes massive volumes that are unstable and not sustainable There is a clear method to how an impulse wave should work, and when you experience 3 motive waves as we see here that are all extended one after the other that means the corrective waves are going to be just as sharp. We are looking at retracing wave of 618 of FIB if the stock finishes its motive wave in these manner -which means stock will fall down below the 30$ line.
NIO Wave chart:
Lets talk FUNDAMENTAL : -XPEV delivered 3,040 in Oct over 200% from the previous year and considering the COVID-19 environment around us at the moment ,that is tremendous in my eyes, add to that the fact that 70% of those were the new Sport sedan P7 which is getting very positive reviews. The EV market is creating new companies like mushrooms after the rain , and though competition is good , inflating a market with so much money and so many brands before it matured enough to sustain it can cause a domino effect and drop the EV market down to new lows and requires us to be patient to see our investment going profitable again.
The earnings of Xpeng are coming in Nov 12 and are expected to be positive – and here exactly is the issue – if expectations from investors on earnings are so high , even positive earnings with a slight downside can bring the stock down like a house of cards at -10% and even more. To sum up – I am a strong believer in EV stocks whether Biden wins or not, but I would say : don’t put all your eggs in the EV market as this can get rocky! WE analyze the stock market acc to the great Ralph Nelson Elliot and combine that with fundamental and sentiment analysis on a theory we call Market Cycle Based Analysis and that gives us high prediction rate 😊 This is not a recommendation but our personal advise Trade Safe, and invest smart !
I still believe that in the long run it’s going to pay off. Technology and new ways of transportation will and are the future. Of course there will be rocky times where we will see this stock drop. However, after putting heavy research into this company I am very very confident that they have all the tools to be successful. Great post appreciate the time you put into this :D
Ummm.... Alibaba taking large position, not sure I would short it
FDGT_academy
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@Harris99, I never said to short it -I said go long idk why people get confused-I said it will correct and then keep rallying up
Christosgialias
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Looks like you were wrong xD
FDGT_academy
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@Christosgialias, technicals will never beat Fundamentals-the hype is too big for a corrective wave ... but that just means the corrective wave will be much stronger -so let’s see if I’m wrong by end of the year -I predict a massive correction ;)
FDGT_academy
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@Christosgialias, looks like i was right XD hhaha -hope you made money on it bro, if not my recc is stay long on it it will start a rise this week
Christosgialias
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@FDGT_academy, haha jeez. What do you think is gonna happen next. I think currently there is great entry point but i m not sure whats gonna happen with those new stocks they re selling.