Li Auto Inc. (NASDAQ: LI) LI stock price has stayed in a range and is heading toward the 200-day EMA, showing profit booking in the past trading sessions. Furthermore, the chart shows sellers were willing to break the immediate support zone of $30 and are likely to initiate a follow-on selloff. However, buyers are trying their best to hold LI stock in a range and are attempting a pullback to retain the 100-day EMA zone. Furthermore, the price action shows the incisiveness between the bulls and the bears, showing a strong battle to be watched in the following sessions.
Li Auto Inc. (LI stock) price is trading in a narrow range, and buyers are looking to fill the gap near $37, which has yet to be filled. Moreover, the trajectory swing of $30 is the strong support zone close to the 200-day EMA. Per the options chain, at the strike price of $36, a massive open interest of 213 hundred shares on the call side, whereas 209 hundred shares on the put side, shows equal interest and incisiveness. However, $35 is the region that is not easy to break for the beard, and a rebound can be anticipated toward $38, followed by $40.
At the press time, LI stock price is trading at $35.01 with an intraday gain of 2.40%, showing neutrality on the charts. Moreover, the trading volume remained average at 3.890 Million and the market cap is $34.253 Billion. However, Analysts have maintained a buy rating with a yearly target price of $53.38, which suggests a growth outlook for the following sessions.
Li Auto, Inc. is a holding company that designs, develops, manufactures, and sells electric vehicles. Its product, Li ONE, is a large electric sport utility vehicle equipped with a range extension system and smart vehicle solutions. The company was founded by Xiang Li in April 2015 and is headquartered in Beijing, China.
Will LI Stock Surpass The Immediate Hurdle of $40?
On the daily charts, LI stock price is trading close to the neutral region and is below the 100-day EMA, showing a mild negative outlook. However, LI share price is trading near the strong support zone, and buyers are holding the gains decisively while attempting a pullback to regain momentum. Furthermore, the LI stock price is trading above the 50% Fibonacci retracement zone, showing neutrality on the charts.
The RSI curve stayed below neutrality and showed a bearish divergence, indicating a reversal on the charts.The MACD indicator showed a bearish crossover and formed red bars on the histogram, suggesting a volatile chart structure.
Summary
LI stock price is trading close to the 100-day EMA and is trying to retain the swing barrier of $40 to regain momentum. However, buyers and sellers showed equal interest and willingness to win the ongoing battle, which resulted in hanging the stock in the congestion zone below $40.
Technical Levels
Support Levels: $30 and $25
Resistance Levels: $40 and $45
Disclaimer
The views and opinions stated by the author or any other person named in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/10/09/li-stock-price-dragged-below-100-day-ema-will-bulls-hold-gains/