Li Auto, Inc. (LI) designs, develops, manufactures and sells premium smart electric SUVs. Also known as Li Xiang, this Chinese company is headquartered in Beijing, with manufacturing facilities in Changzhou. Keeping that in mind let's check on the condition of the charts and indicators.
In this daily bar chart of LI, below, we can see a weak picture. The shares are trading below the declining 50-day and the declining 200-day moving average line.
The daily On-Balance-Volume (OBV) line is weakening as traders are more active on down days. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Point and Figure chart of LI, below, we can see that the shares have moved in a wide sideways pattern but the chart is showing recent weakness -- the stock is trading below the declining 40-week moving average line.
The weekly OBV line has declined the past three months and the MACD oscillator is close to crossing below the zero for an outright sell signal.
In this daily Point and Figure chart of LI, below, we can see that the shares have reached a downside price target in the $24 area.
In this weekly Point and Figure chart of LI, below, I can see the same downside price target of $24 being reached.
Bottom-line strategy: I know it is a blanket statement but I have little confidence in China-based companies at this point (the chart of the ( FXI) ETF is in a downtrend). Avoid the long side of LI.
