Hi YXI friends,

In Part 1, we conducted a comparable valuation review of some of the largest US-listed Chinese stocks. Make sure you check out the article first (link below), which provides an important context and risk considerations for investing in Chinese stocks.

Today, we are going to go through each stock’s chart using technical analysis to highlight their potential setups. As usual, the main tools we utilise are the Elliott Wave Theory and Fibonacci extensions.

In this article, we focus on the E-Commerce and Automotive, including BABA, JD, PDD, VIPS, LI, NIO, XPEV. In our next article (Part 3), we will look at the remaining internet services companies.

Let’s dive in!

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. E-Commerce

1) BABA: Alibaba

BABA Weekly (https://www.tradingview.com/x/EkuLx1Nn/)

BABA looks to have completed Cycles Wave I and II with its 2020 high and 2022 low. Now, BABA is launching Cycle Wave III. BABA appears to be moving through wave 3 of (3) of Primary wave 1 (which is a degree lower than the Cycle wave)

BABA Daily (https://www.tradingview.com/x/ECNu1a3S/)

Wave 3 target is at $135, with wave 5 of (3) poised to finish around the $175 region.

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