XPeng ADR (XPEV) designs, produces, and distributes electric vehicles. As the world is embracing EVs as a way of helping our climate problems, we should take a look at this Chinese company.
In this daily bar chart of XPEV, below, we can see a large base pattern with a "neckline" along the $45 level (use your imagination and your eye). Prices are trading above the positively sloped 50-day and 200-day moving averages. The On-Balance-Volume (OBV) line shows a bullish rise from May. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bullish and curving upwards.
In this weekly Japanese candlestick chart of XPEV, below, we see a positive picture. Prices are trading higher and stand above the rising 40-week moving average line. The weekly OBV line confirms and supports the price gains so far. A new high for the OBV line may not be far off. The MACD oscillator is in a bullish alignment above the zero line.
In this daily Point and Figure chart of XPEV, below, we can see a potential upside price target around $71.
In this weekly Point and Figure chart of XPEV, below, we see that the software is projecting the $82 area as a potential price objective.
Bottom line strategy: Many traders and investors have sworn off Chinese companies. I can understand that reaction. (We used to worry about investing in Russian companies way back when.) Maybe they ignored warning signs on the charts or neglected to have a sell stop. For me, I find the charts of XPEV attractive and traders could go long at current levels. Risk to $46. On the upside I would look for gains to the $71 area followed by the $82 area.
