- 1
Li Auto Inc. (NASDAQ: LI) stock price declined 3.16% in the last week and currently trades at $38.59 (press time). - 2
LI stock price fell below the 50-day exponential moving average. - 3
The daily chart shows the formation of a bullish flag pattern.
The price analysis of Li Auto Inc. (NASDAQ: LI) stock highlights the weakening short-term strength in the trend. The LI stock price shows volatility, delivering a neutral to mild bearish trend in the short term.
The daily chart shows the formation of a bullish flag pattern in Li Auto stock and that the price is respecting the upper and lower boundaries of the channel pattern. The LI share may have entered a short-term correction phase after a rally over the last two quarters.
2023 has been very fruitful for the LI stock investors. The stock has gained 77.3% year-to-date. The stock price persisted in a bullish trend and maintained above the 50-EMA for the last 2 quarters. The price might gain more if more buyers successfully break above the bullish channel.
The analysts offering a price projection for 1 year in Li Auto Inc. have a bullish outlook. The analysts observe a potential of 87.7% which could take the price to a high of $72.2. On the other hand, the bearish outlook stands at a drawdown of 9.47% from CMP which could drag the price to a low of $34.94.
LI stock option-chain analysis states that the current implied volatility in the market is 49.96% with an increment of 0.03% in the last trading session. The at-the-money strike price has 1010 open contracts on the PUT side and 188 open contracts on the CALL side highlighting the dominance of buyers at the current level.
Li Auto Stock Price Shows Weakness Over Daily Chart
The LI stock currently trades at $38.59 with a 0.52% gain on Wednesday. The price shows volatility over the daily chart and is struggling to sustain above the 50-EMA.
Analysts are suggesting that LI share price is losing buyers’ momentum. The price currently follows a parallel channel pattern and has entered a short-term correction. The breakout of the channel may align the short-term trend with the long-term and the price could consequently reach new highs. The option chain data also shows the buyers dominating at the lower levels.
RSI and MACD Indicators Show Volatility and Indecisive Trend
The technical indicators opinion rating including RSI and MACD for the stock indicates a 40% “buy” with the weakest short-term outlook on maintaining the current trend.
Conclusion
LI stock price currently trades at $95.79 with a 2.66% gain last week. The breakout or breakdown of the descending triangle pattern may further determine the trend.
Technical Levels
- Support Levels: $37.79 and $34.90
- Resistance Levels: $41.01 and $44.54.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/09/21/how-will-li-auto-li-stock-react-to-the-jump-in-car-sales-in-china/