XPEV broke out today, hitting $45 at a 32% breakout. We have been watching this stock since it was around $17, buying in at $19. There will be a profit taking coming up, and if you are not in this stock yet, there is a GAP trade to play that may work out for you.
$33.45 was where the stock closed, before opening well above the closing price, creating a big gap. Because the stock is in price discovery, it will be very volatile, and should be able to return to gap. However, IPOs are unpredictable at best, and we can never be too sure. Wait for reversal to play out, then see if gap trade is still tangible.
$33.45 was where the stock closed, before opening well above the closing price, creating a big gap. Because the stock is in price discovery, it will be very volatile, and should be able to return to gap. However, IPOs are unpredictable at best, and we can never be too sure. Wait for reversal to play out, then see if gap trade is still tangible.
Note
There was a 20%+ correction, after XPEV hit $51. The drop resulted in a price point of $38, which was strongly rejected with a very long wick at the bottom of the candlestick. This was based solely on News from CItron, who originally was very bullish on the stock since $7, and since then pulled the plug on it, saying 'there is no circumstance that justify the high prices recently'. Due to that news, it was enough to create a selloff, which the stock needed severely anyways. Currently the stock trades at $40, and we will see if the selling pressure remains steady, or if the stock will resume its pevious trend.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.