XPeng Stock Looks To Break Out After Upbeat July Delivery Numbers

Xpeng Inc. XPEV shares are trading higher Monday after the company increased its delivery numbers for the month of July. XPeng reported deliveries of 8,040 smart EVs, representing a 22% increase month-over-month and a 228% increase year-over-year.

XPeng was up 7.06% at $43.39 at the close Monday. 

See Also: Why Xpeng's Stock Is Trading Higher Today

XPeng Daily Chart Analysis

• Shares look to be trading in what technical traders call a bullish flag pattern. On a larger scale, shares are trading within a sideways channel.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock is likely turning bullish.
• Each of these moving averages may hold as a possible area of support in the future.
• The bullish flag occurs after a bullish run where price falls in a downtrending channel until price breaks over resistance or under support.
• The Relative Strength Index (RSI) recently crossed over the 50 mark and has been heading higher. The RSI now sits at the 58 mark, meaning there are more buyers than sellers in the stock.

What’s Next For XPeng?

Bullish traders would like to see the stock break above the pattern resistance and start moving toward channel resistance. Eventually bulls want to see the stock cross above the $60 level and consolidate.

Bears would like to see the stock fall below the pattern support and start to move pack toward the channel support. Bears would then like to see the stock fall to the $25 level before breaking below and continuing downward.