LI AUTO INC. ADS - Li Auto becoming Tesla’s closest competitor in China - 05/09/2023 (GMT)

Li Auto Inc. shares (symbol ‘LI’) managed to make a profit in the first quarter of around 14% in a pretty volatile environment. The company’s earnings report for the fiscal quarter ending March 2023 is set to be released on Wednesday 10th of May, before market open. The consensus EPS for the quarter is $0,01 compared to the same quarter last year of $0.  ‘ The company has announced on May 1st that they have delivered more than 25,000 cars in April, the highest in history, and more than five times more than in 2022. This achievement allowed Li Auto to throw off rivals Xpeng Motors and NIO becoming the closest competitor to Tesla in China's high-end EV market.’ said Antreas Themistokleous at Exness.  From the technical analysis perspective the share has faced big volatility movements throughout all of the months in 2023 mostly because of the price wars that rage in China from EV competitors in an effort to get more market share. 
 The Bollinger bands are still quite expanded indicating that the volatility in the market is still strong while the 50 SMA is still holding above the 100 SMA validating the narrative of a bullish momentum still in play. Currently the price is trading at a strong technical support area on the daily chart which includes the 20 & 50 SMAs as well as the 23.6% of the weekly Fibonacci retracement level.