Descending Channel Idea - Next Upside Targets
Hi friends, Xpeng was one of my favorite EV companies until it dropped more than 60% from its November 2020 peak. I am sure many traders have been buying the dip and I have some good news if you are still holding.
Looking at the chart, we can see the stock filled the major gaps and found support around $25 (which was the resistance back when the stock got listed). If we look at the swing highs and clone the trend line at the swing lows, it looks like we are in a downward channel; so far in the form of ABC correction as illustrated in the chart. I anticipate we are at the end of the C correction wave and we would be heading to the top part of the descending channel in the coming days. Please keep these resistance zones in your mind to track and take profits along the way:
- Target 1: $32 - $34
- Target 2: $37 - $39
- Target 3: $41 - $43
The top of the channel would be the final target, however, if broken be ready to test all time highs though with the current apatite, I am doubtful this would happen anytime soon unless Tesla decides otherwise and pull all EV stocks with it.
Please share your thoughts.
Good luck!
Looking at the chart, we can see the stock filled the major gaps and found support around $25 (which was the resistance back when the stock got listed). If we look at the swing highs and clone the trend line at the swing lows, it looks like we are in a downward channel; so far in the form of ABC correction as illustrated in the chart. I anticipate we are at the end of the C correction wave and we would be heading to the top part of the descending channel in the coming days. Please keep these resistance zones in your mind to track and take profits along the way:
- Target 1: $32 - $34
- Target 2: $37 - $39
- Target 3: $41 - $43
The top of the channel would be the final target, however, if broken be ready to test all time highs though with the current apatite, I am doubtful this would happen anytime soon unless Tesla decides otherwise and pull all EV stocks with it.
Please share your thoughts.
Good luck!
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