This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Have you been to China recently?

Did you notice that there are many electric vehicles on the road? From scooters to cars and even buses!

Closer at home, the population of electric vehicles in Singapore is growing fast.

As the world begins ramping up infrastructure to support electric vehicles and their ecosystems, the demand for electric vehicles is likely to rise.

Could XPeng, an electric vehicle manufacturer, supercharge your stock portfolio in the coming weeks?

Let’s find out.

Brief History of XPeng

Source: xpeng.com

XPeng is a relatively young automaker, founded in 2014.

It made a splash in the Chinese market with its first electric vehicle shortly after.

Having overcome many hurdles, XPeng soon ventured in the US market by setting up a factory.

The company has also set its sights on flying vehicles.

While it’s good to have great ambitions, it’s important to remain financially healthy.

So, let’s dive into it’s financials to find out more.

Business Model and Financials

Source: tradingview.com

Total revenue is important because it tells you whether the company is bringing in more business. This is reflected by the bars in blue.

By looking at the bars in blue, you can tell that it’s business has been growing every year! While this is a piece of good news, it pays to look at its net income as well.

Its net income can be depicted by the bars in yellow, and tells another story – the company is losing money. This has been going on for years, since 2018.

You can conclude that the company may run itself into ruins if this continues indefinitely.

But as a position trader, should this be your main concern?

I would be more concern of its price chart. And that’s what we will be looking at in the next section.

Technical Analysis on XPeng (NYSE: XPEV)

XPeng’s price chart is full of stories.

Unpacking its stories is easy with the use of a couple of proprietary indicators.

First, can you tell that its share price was in a downtrend until Sep 2024 by comparing the number of red and blue candles (solid and outlined)? The number of red candles (solid and outlined) outnumbers the number of blue candles (solid or outlined).

However, the number of blue candles (solid and outlined) began to outnumber those in red from Sep 2024, telling you that XPeng’s share price is now in a firm uptrend. This also means that you want to to be on the lookout for a buying opportunity.

To help you discover whether the time to buy its shares for a position trade is here, let’s refer to these 2 indicators – the green arrow and Trend Impulse Factor.

Do you see a green arrow under its latest candle?

This tells you that a fresh uptrend is here.

To profit from the market, you’ll want to know whether this uptrend is likely to continue. That’s where the Trend Impulse Factor comes in.

When it’s dark green in color, bullish momentum is detected. This signals that this fresh bullish move is likely to continue for some time, presenting you with the chance of a healthy return.

Within 1 minute, you can safely conclude that the time to buy the shares of Xpeng for a position trade is here!

There’s no need for you to spend an hour plotting your support and resistance, trendlines, and more.

Conclusion

Source: xpeng.com/service

As the world ramps out infrastructure to support electric vehicles, demand for electric vehicles should continue to rise. XPeng should benefit from this.

Although its financial health isn’t at its best, market participants are bullish on its stock. Its share is in a firm uptrend, and the proprietary indicators signal that the time to buy its shares for a position trade is here.

Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won't have to feel in the dark and make wild guesses.

Therefore, you’ll want to consider buying the shares of Rollins for a position trade.

What are your thoughts?

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