Economy, News, Price Analysis, Stocks

XPeng Stock Gains 48% From Double-Bottom Setup – Time to Buy?

  • Thursday saw XPeng stock gaining 48% following a massive deliveries report.
  • The stock recovered from a $6.2 double bottom.
  • The stock marketplace remains pessimistic, but XPEV might see continued short-term upticks.

XPeng Inc. shares (NYSE: XPEV) gained 48% during Thursday’s pre-market. The impressive hike follows an attractive delivery outlook. XPeng recorded 5,811 electric car deliveries last month. Though the number reflected a 63% dip from the previous year, it surged 14% from the October session.

The deliveries uptick confirmed eased COVID-19 policies, which have hit China-based EV makers this year. XPeng stated that it anticipated significant deliveries surge in December this year. The firm’s deliveries will receive a boost from G9s ramp-up production. Analysts estimate up to 10K deliveries this month.

Meanwhile, the delivery picture overshadowed Q3’s reported $0.39 loss. Meanwhile, Xpeng’s revenue gained 19.3% to 786 million pounds ($959.2 million). The optimistic stock market outlook and news boosted XPEV’s, though the shares remain 80% down YTD.

XPEV Recovers Beyond MA Following Bullish RSI Divergence

The 24-hour timeframe shows XPEV revives beyond the 20d and 50d Moving Averages. Remember, the stock has traded beneath these MAs since July. Also, the shares are recuperating from a double-bottom pattern that formed near $6.2.

A Bullish Relative Strength Index (RSI) divergence also emerged towards $6.2. The value area might be a bottom price if the stock retains the ongoing revivals. Meanwhile, the Relative Strength Index 60 reading shows XPEV hasn’t hit overbought regions.

How Lucrative is XPEV?

This analysis finds investing in XPeng stock lucrative in the near term. XPEV seems primed for continued surges, considering its outlook and deliveries. Meantime, market participants should watch levels near $12 & $14. Moreover, enthusiasts should beware that China car sales tend to skyrocket toward the year’s end. XPEV may have what it takes to exhibit medium-term gains.

Nevertheless, the broader stock market remains at high risk. Also, China should soften its COVID policies further as they may still weigh the car maker. Improved financial market cues can support extended upsides for the stock. Time will tell when such narratives will emerge.

Stay tuned for the latest stock news.

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