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Let me tell you why everyone else is wrong about China.

Rate cuts and a weaker dollar are making international stocks competitive again. No other large country has a tech landscape that can compare to the U.S. except China. They have more power to drive consumers into electric vehicles than we do.

That combination creates a setup most traders will never see coming in XPeng Inc. (XPEV).

XPeng recently broke a three-year downtrend. The pattern is reversing. Momentum has turned up with RSI readings above 70 for the first time since 2021. This isn't just another international play. This is a chart and a company that are both worth watching closely.

The Setup Nobody Sees Coming

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Take a look at the XPeng stock chart I've been tracking. The stock endured nearly three years of brutal selling pressure. Now we're finally seeing a technical reversal. This has all the hallmarks of a major trend change.

Notice that key resistance level around $24? XPeng has tested it repeatedly. Now we're seeing the kind of momentum surge that signals fundamental change.

The RSI just pushed above 70. This marks the first time in years. That's not overbought weakness, that's institutional momentum returning to a dead sector.

The Catalysts are Aligning Perfectly

Here's what's creating this perfect storm:

• The Fed's rate cuts boost more than U.S. stocks. They're rocket fuel for international markets.
• The dollar weakens from lower rates. International stocks suddenly become attractive to global capital flows. Money trapped in dollar assets is hunting for value.
• Where's some of the best value in the entire tech landscape? Chinese EV stocks trade at fractions of Tesla's valuation. But they have something the U.S. can't match: government power to drive mass EV adoption.

The Only Real EV Competition to Tesla

Let's be honest about something the financial media ignores.

Only one other major economy can compete with the U.S. in electric vehicles. That's China. U.S. automakers debate EV adoption timelines. They deal with charging infrastructure bottlenecks. China's government has the authority to accelerate their entire consumer base into electric vehicles overnight. That's not speculation, that's policy reality.

Companies like XPeng aren't just building cars. They're building for a market where the government can mandate adoption faster than anywhere else.

The Technical Picture is Getting Exciting

From a pure chart perspective, XPeng shows me exactly what I want in a major reversal setup. We've got that multi-year base formation finally breaking upward. The momentum indicators turn bullish for the first time since early 2021. Most importantly, volume is returning to the name. This pattern separates real moves from fake-outs.

You combine improving technicals with macro tailwinds. Weaker dollar. Rate cuts. China's EV policy advantage. You get a setup that could surprise people who've written off Chinese stocks entirely.

Why This Matters for Your Trading

I've been tracking these international rotation opportunities. They're part of my broader market analysis. Real opportunities develop in overlooked market corners. The China EV space is one of those corners.

XPeng caught my attention for a specific reason. It's not just riding the general China recovery. It's positioned in the exact sector where China has the most competitive advantage over the world.

That combination tells the story. Technical breakout plus fundamental tailwinds plus policy support. That's exactly what I look for in my highest-conviction setups.

I'll be watching this one closely. I'll keep you updated on how the pattern develops. Sometimes the best opportunities hide where nobody else looks.

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