XPeng, Inc XPEV soared about 14% higher on Tuesday morning after printing a third-quarter revenue beat and issuing a strong earnings forecast for the fourth quarter. The stock has climbed about 50% since hitting a low of $33.52 on Oct. 4, guided by strong bullish sentiment across much of the electric vehicle sector.

The China-based EV manufacturer unveiled its newest EV model on Nov. 19 in Guangzhou. The new smart EV model, the G9, is the company’s first SUV and was developed for both the Chinese and international markets. The vehicle is expected to be the first model in China to meet the regulation framework expected to be implemented by the E.U. in 2022.

Unfortunately for the bulls, Xpeng was unable to bust up through a resistance level at $54.30 due to general market weakness and subsequently retraced about 5% by midday.

The Xpeng Chart: On Oct. 13 Xpeng broke up bullishly from a descending trendline that had been holding the stock down since reaching a July 2 high of $47.98. The following trading day, Xpeng back tested the trendline as support and entered into an uptrend making a series of fairly consistent higher highs and higher lows on the daily chart.

On Tuesday, Xpeng was able to print a higher high above the Nov. 12 high of $50.40. The most recent higher low falls at the $45.88 mark and for the uptrend to continue Xpeng will need to print a higher low above that level.

In the late morning on Tuesday Xpeng was settling into a bullish double inside bar on the hourly chart. Both bulls and bears can watch for a break from the pattern in the afternoon but the formation leans bullish because Xpeng was trading higher before forming the pattern.

Larger consolidation on the daily chart will eventually be needed because Xpeng’s relative strength index (RSI) is measuring in at about 65%. When a stock’s RSI nears or reaches the 70% level it becomes overbought, which can be a sell signal for technical traders.

Xpeng is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 50-day simple moving average, which indicates longer-term sentiment is bullish.

• Bulls want to see further consolidation at least on lower timeframes and then for big bullish volume to come in and drive Xpeng up over resistance at $54.30. Above the level, Xpeng has resistance at $57.55.
• Bears want to see big bearish volume come in and drop Xpeng down below a support level at $49.17, which may cause the stock to lose support at the eight-day EMA. Below the levels there is further support at $45.75 and $42.40.

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