Is Xpeng Ready for the Ride?I had a close watch on XPEV in late 2020 after it dropped from its all-time high. The stock ultimately saw a breakout on January 12, followed by a vital retest of the 20-day EMA and 50-day SMA on January 15. However, the move was hammered by a broader sell-off that was ruthless to the EVs. Personally, I think bullish sentiment is returning to the sector. However, from a technical point of view, I do not rule out that short-term headwinds may slow down the rally.
The XPEV ticker reappeared on my radar a couple of days ago after the company reported revenue growth in the fourth quarter of 2020. Looking at the technicals, volume looked promising, and my Delta-RSI momentum oscillator hinted at running out of the downside trend. During yesterday's premarket, the shares broke out of what I see as a narrow downside channel. However, the US session eventually sent them back to retest this zone.
Today I will be watching to see if the bulls manage to push XPEV above the monthly S1 Fibonacci pivot level ($32.27; SM1 on the chart). If that happens, I will consider going long with the 20-day EMA being my intraday target, followed by a monthly pivot of $39.39 (PM).
On the downside , a break below yesterday's low will result in a return to the channel and put the Fibonacci SM2 pivot level followed by the channel center line in play.
