Home » LI Stock Forecast: Will (NASDAQ: LI) Stock Fall More Or Rise?

LI Stock Forecast: Will (NASDAQ: LI) Stock Fall More Or Rise?

Ritika Sharma
September 11, 2023
8:15 pm

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1 The year-to-date return of Li Auto Inc. is 76.47% while the three-month return is 19.44%.
2 Li Auto stock price trades above the 100, and 200-day EMA, looking good in the long term but faced rejection in the short term and moved below 20 and 50 EMA.
3 Li Auto Inc. (NASDAQ: LI) stock’s 52-week price range is around $12 – $47.

Li Auto’s Price-To-Sales Ratio (3.8x) shows that it is undervalued compared to its fair value estimate (3.9x) and the average of the US Auto industry (5.2x). Li Auto has been profitable for the last five years, with its earnings increasing by 40.3% per year.

Li Auto has a solid financial position, with more cash than debt and a high operating cash flow coverage of 299.1%. Li Auto is projected to grow its earnings and revenue significantly over the next three years, at rates higher than the market and the industry.

Li Auto Inc. has a strong “buy” rating from 42 analysts on TradingView who rated it in the last three months. The 35 analysts who gave 1-year price forecasts for Li Auto Inc. projected a high of $72 and a low of $34.

Xiang Li (Founder and CEO) is the top shareholder of LI stock and owns 23.23% of the company, with a current value of $9.0 Billion and a total LI share count of 232,184,740. This is according to the information on the financial website, Simply Wall St.

LI stock has been rising since the beginning of 2023 and has shown buyer accumulation. The stock encountered a barrier near the supply range and retracement in the previous sessions and may decline more to form a support around fibo 38.20% level in the short term.

LI’s stock price was at $38.40 with an intraday decrease of 0.44%. Moreover, the intraday trading volume of LI is 1.965 Million more than the 10-day aggregate volume of 6.202 Million. The stock has a market cap of $39.1 Billion and the floating shares are 799.26 Million.

Based on recent data, the revenue of Q2, 2023 was $4.08 Billion with a net income of 326.66 Million. Moreover, the LI stock estimated EPS for Q2’ 23 was 0.24, and the reported EPS was 0.36 which gave a positive surprise of 46.79%.

Technical Analysis of LI Stock Price in 1-D Timeframe

LI was in a bullish trend from October last year even before 2023 started. The LI price found support around $13 and was strongly bought. From the low of $13 to the high of $47, the journey was strong and moved upwards by making higher highs and lows, the yearly high was reached by August 7th, 2023. Moreover, the price moved along the Fibonacci levels and rose steadily from these Fibo levels.

At the time of writing, the price is $38.40, and has faced some resistance after the quarterly results. The price has dropped to the 23.60% Fibonacci level as some investors booked their profits. The price may fall further to the 38.20% Fibonacci level, where it may find some support at $35. Since the stock is fundamentally strong, it may try to rebound from there and resume its upward movement.

The current stock price of LI may achieve more but there is a possibility for the price to move toward the next resistance level of $43 and $47.

On the other hand, if the price breaks below the $35 significant support level, it might fall toward $33 and beyond.

At the time of publishing, Li Auto Inc. (NASDAQ: LI) stock is still above the 100 and 200 EMA, indicating a long-term bullish trend. However, the stock fell below the 20 and 50 EMA, showing short-term bearish pressure.

The RSI is around 43 which means the stock is losing momentum and may be oversold. The MACD has crossed below the signal line, giving a bearish signal on the charts.

Summary

Li Auto Inc. (NASDAQ: LI) indicates that the traders and investors of the stock price are bearish in the short trend and bullish in the long trend on the 1-D time frame. The price is showing signs of weakness and may drop to $35, where it may find some support. The technical indicators of LI stock price also confirm the short-term downtrend. The EMA, RSI, and MACD are all pointing downward, indicating a lack of momentum and buying pressure. However, the company has strong fundamentals and may recover in the long-term outlook.

Technical Levels

Support levels: $35 and $33

Resistance levels: $43 and $47

Disclaimer

In this article, the views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.