LI AUTO INC. ADS - Li Auto Inc.(symbol ‘LI’) - 02/21/2024 (GMT)

Li Auto Inc. (symbol ‘LI’) share price had a pretty volatile quarter with gaps forming regularly on its chart but eventually managed to close the year on a positive sign of 3% for Q4. The company’s earnings report for the fiscal quarter ending December 2023 is expected to be released on Monday 26th of February, before market open. The consensus EPS is $0.29 against $0.04 in the same quarter last year.

‘ Li Auto has shown significant growth in deliveries, improved profitability, and efficiency, but macroeconomic uncertainties in China and pricing battles among competitors continue to pose challenges. Despite the firm's reasonable valuation compared to direct competitors, the macroeconomic environment in China with deflationary forces and overcapacity of EV makers creates uncertainty and therefore the company struggles to attract big investors for the time being.’ said Antreas Themistokleous, trading specialist at Exness.
 
Technical analysis shows that the price is currently trading at a rather interesting point on the chart where the 50% of the daily Fibonacci retracement level, the 50-day moving average, and the upper band of the Bollinger bands cross. Also the Stochastic oscillator is in the extreme overbought levels hinting that a correction to the downside might be the dominant scenario. If the current level of $32 proves to hold and the price corrects to the downside then the first area of possible support might be found around the $30 price area which is the psychological support of the round number as well as the last area of price consolidation in mid-February.