Li Auto (LI) Technical Analysis Before Its Earning on 08 Aug Pre-Market

Li Auto has reached a new 52-week high of $47.33 intraday Monday, and it is on target to reach its previous record of $47.70 set in Nov 2020 (just a few months after its IPO).

Li Auto have delivered about 87,000 units in the second quarter of 2023, up more than 200% from the roughly 29,000 delivered in the second quarter of 2022.

The second quarter of 2022 was impacted by COVID-19 lockdowns in China.

In July, Li Auto delivered a record 34,134 vehicles. Market is expecting around 90,000 vehicles for the 3rd quarter.

In this article I would be sharing on how Li Auto Technicals have been doing and I looked forward to the guidance and earnings that will be discussed at 8 a.m. EST.

As of yesterday (07 Aug) After Hours close, Li Auto stock is at $46.64.

Based on positive projections for Li Auto's financial performance. market is looking at a significant improvement in EPS, with an increase from $0.03 to $0.25.

Based on SMA, Li Auto have been on a very Strong bull trend and this bull trend have been on a long period.

With strong financial projection and stronger deliveries expected, I believe Li Auto should not have any reason not reaching the high of $47.70.

It might also be possible to surpass $48.

RSI show that Li Auto is in the overbought region. Normally if this happen, traders might be looking to do sell offs.

With some traders and investors who might be waiting for profit taking, it is no surprise that we could be seeing some stronger selling activities when Li Auto trying to reach $47 and above.

ADX is above 40 and even cross 50, this indicate a very strong trend. With +DI above -DI on a wide margin, this suggest that this is a strong bullish upside movement trend.

What I will be looking for is Li Auto delivery guidance and the improvement for overall 2023.

Basically there is no signs of any reversal, Li Auto should be trending even higher in a bullish upside movement.

I believe a new highs might be in play today after its earnings in pre-market. Something I would look forward to its price action to take advantage for a swing trade.

From what I have observed, Li Auto no doubt have been enjoying a very strong bullish trend. With its positive financials and also deliveries.

There is expectations of a huge improvement of EPS from -0.03 to 0.25. This is something worth monitoring to catch a swing trade.

Appreciate if you could share your thoughts in the comment section whether you would be looking to trade Li Auto?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.