LKNCY has made a powerful breakout from its accumulation zone. This breakthrough came on the back of strong quarterly earnings, positive net income, and growing revenue. INTRODUCTION: LKNCY is a strong rival of Starbucks in China. It is rapidly adding new stores, reaching the nationwide number of nearly 8,000. In contrast, Starbucks has 6,000 stores in China...
LKNCY Is in a bearish trend, despite being above the down trend line, a true bottom may be far away In the short term although bullish action should come about as it repeats pattern in green Price when trending along downtrends like this can continue for awhile is the main takeaway.
It can be seen after the MA arrives and makes a small turn towards the upside, price immediately follows This can be observed on the latest MA (yellow) The price is within a Rising Wedge (a bearish pattern) but this observation of the MA's give me hope for a bull breakout, as can be seen with each MA in the past
Luckin fell from $51 to $1 on de-listing, but the fraud has been resolved supposedly, and is on the verge of being re-listed. It should see similar levels upon re-list. PT: $25
Guo is named the new CEO. A change in management might bring LKNCY to the upside. Pay close attention to the executive team and their debit to income ratio. Potential acquisition is possible.