7 EV Stocks With the Best Technical Setups

EV stocks - 7 EV Stocks With the Best Technical Setups

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Several electric vehicle (EV) companies have come flying out of nowhere, with some doing quite well. Leading the charge is Tesla (NASDAQ:TSLA), as we’ve seen a number of stocks come to life over the past 12 months. These EV stocks have been some of the best performers of the last several quarters and several years. 

It’s got some investors confused, given the low valuations that tend to accompany the automotive sector. At the same time, it’s got other investors excited about what the future may hold. 

Tesla has seen its market cap balloon, rallying over 600% from the March 2020 low. Even traditional auto stocks have gotten in on the action, while a bevy of SPACs and IPOs have come to the market. 

Despite the nasty bear market we’ve seen in growth stocks, we’re seeing some nice rebounds in the EV space. Let’s look at seven EV stocks with the best technicals, starting with you know who:

  • Tesla
  • Nio (NYSE:NIO)
  • Ford (NYSE:F)
  • General Motors (NYSE:GM)
  • XPeng (NYSE:XPEV)
  • Li Auto (NASDAQ:LI)
  • Fisker (NYSE:FSR)

EV Stocks With Great Technicals: Tesla (TSLA)

Top EV stocks like TSLA
Source: Chart courtesy of TrendSpider

Tesla leads the pack when it comes to EV stocks and that’s true for the charts, too. While Tesla’s market capitalization of $634 billion is notably below its high, the technicals are starting to line up again. 

I kept looking for one last flush in this one and it never came to fruition. In early March, Tesla stock bottomed near $540. The rebound sent shares to the $700 zone, then the gap-fill measure near $781. 

Upon another retreat, shares bottomed near $547, above the March low. That’s notable as many other growth and EV stocks went on to make new lows. Ultimately Tesla has reclaimed all of its major daily moving averages and continues to consolidate in a rather tight range. 

From here, we either need to see a pullback into some of these key moving averages or a push toward $700. Above $700 opens the door to the $762 to $781 area. Above that and $800-plus is possible. 

If there’s going to be a rebound in EVs, it’s going to start with Tesla. 

Nio (NIO)

Top EV stocks like NIO
Click to Enlarge
Source: Chart courtesy of TrendSpider

That said, Nio is no slouch either. Unlike Tesla, Nio did make a new low in May. However, it wasn’t by much. 

It gave what many of us call a “look below and fail.” That is, it looked below a key level — in this case, the prior low — and “failed” to break down. It ended up reversing higher and just recently cleared the key $50 level. 

Already up a sizable amount from the May low, investors may not know what to expect. From here, let’s see if Nio can push higher up to the 61.8% retracement near $53. 

If shares can build above $50 and eventually clear the 61.8% retracement, the gap-fill level at $58.65 is in play. On the downside, I want to see the 10-day and 21-day moving averages act as support. Below puts the $43 to $44 area on the table. 

If Tesla is going to go for a run, it’s likely that its “little brother” Nio will be in a similar position. However, I would expect a little more volatility with this one.

 

EV Stocks With Great Technicals: Ford (F)

Top EV stocks like F
Click to Enlarge
Source: Chart courtesy of TrendSpider

Shifting gears here a bit, Ford is far from a pure play on the EV space. For decades, the company has been a producer of internal combustion engine (ICE) vehicles and only recently began making a push into electrifying its fleet. However, it’s doing so with some major commitment. 

The company has already used its Mustang brand to bring an electric vehicle to market. Now it turns to America’s best-selling vehicle, the F-Series pickup, and adding the F-150 Lightning. There is a lot of promise in adding an electric pickup to its lineup and Ford hopes it will give its top and bottom line a nice jolt. 

So far, Wall Street seems quite receptive to it. 

When I look at Ford stock, I see a large bullish pennant formation. That’s defined by a series of lower highs and higher lows, as the stock consolidates its recent gains. From here, bulls are looking for an upside breakout over downtrend resistance (blue line). 

It may need to chop around $15 some more, but an eventual breakout could put the highs back in play at $16.45. Above that and the 261.8% extension near $17.50 could be on the table. 

If shares break down instead of break out, the 10-week moving average is the first line of support. That’s followed by the key $13.50 level and the 50-day moving average. 

General Motors (GM)

Top EV stocks like GM
Click to Enlarge
Source: Chart courtesy of TrendSpider

Like Ford, General Motors is an old-time automaker trying to make the pivot toward electrification. The company has also done pretty well in its autonomous driving efforts with its Cruise unit. CEO Mary Barra hasn’t shied away from the automotive future and it’s given the stock a nice boost over the past year. 

Rather than looking at a daily chart like the preceding EV stocks on this list, let’s zoom out a bit with the weekly chart. Once we do, it becomes evident that GM stock is channel-bound as it slowly but surely grinds higher. 

Right now, GM is holding the 10-week moving average and trying for a weekly-up rotation by clearing the prior week’s high. If that doesn’t happen, it’s okay. It still has the 21-week moving average and channel support as potential dip-buy zones. 

On the upside, bulls want to see a rally up to the 161.8% extension near $67 and to channel resistance. Above opens the door to $70-plus. 

Should support fail, the $50 area and the 50-week moving average could be on the table. 

EV Stocks With Great Technicals: XPeng (XPEV)

XPEV
Click to Enlarge
Source: Chart courtesy of TrendSpider

I think investors would be pretty impressed with how well some of the Chinese EV stocks are trading. Granted, many of these names were crushed during the growth-stock bear market, but a handful are making a strong recovery. In that group, we can include XPeng. 

The company currently commands a $35 billion market cap and trades on the NYSE after coming public in August 2020. While we saw a peak-to-trough decline of 69.5%, the rebound has been strong as shares are now back above all of its major moving averages. 

Amid that decline, the stock gave us a “1-2-3-4-5” or if you prefer, an “A-B-C-D-E” decline. As shares bottomed at $22.73, XPEV also showed some divergence on the Williams %R reading (shown at the top of the chart).

From here, I want to see a rotation through $45.25, opening up the 50% retracement and $50 level. Above that and the 61.8% retracement is on the table near $55. 

On the downside, I want the short-term moving averages to act as support. If they fail, it’s important to see that the 200-day buoys the stock and that the 50-day moving average turns from prior resistance into current support. 

Li Auto (LI)

LI
Click to Enlarge
Source: Chart courtesy of TrendSpider

Dare I say Li Auto is the best-trading EV stock right now? Shares have been on fire since bottoming in early May, rising in eight straight weeks since hitting bottom. Up roughly 95% and it’s clear that this stock is leading the current charge. 

The 10-day moving average continues to guide Li Auto higher, as shares have now cruised through the 50% retracement measures. 

Into the 61.8% retracement now and I would love to see a mild pullback from here. Perhaps down to the 10-day moving average and the $30 to $31 area. That would allow the stock to cool off a bit and consolidate its gains while keeping the overall trend intact. 

Above $35 and the $37 level is next in line, which saw resistance in January and also comes into play near the 2021 highs. Note that Li Auto didn’t make new highs in February like most EV and growth stocks. Instead, it was already breaking down — it was the canary in the coal mine. 

Above $37 puts the 78.6% retracement on the table. 

EV Stocks With Great Technicals: Fisker (FSR)

Top EV stocks like FSR
Click to Enlarge
Source: Chart courtesy of TrendSpider

Fisker is evidently trying to give Li Auto a run for its money. It too has been trading incredibly well. Shares have rallied in six of the past seven weeks and at the recent high, were up about 75% from the May low. 

Those observations barely trail Li Auto and still leave Fisker in a pretty good position. However, the technical setup is a little more specific with this one. 

At the time of this writing, it’s June 30, which means a new monthly candle is about to set as we enter July. If Fisker shares can continue higher, I want to see the stock take out the June high at $20.61 and give bulls a monthly-up rotation. 

In that event, it could open up to the $23 to $24 area or higher. 

If we don’t get a monthly-up rotation, that’s okay. Instead, we can look for a pullback too. Specifically, there are some nice bounces off the 21-week moving average, with support in play near $17. 

If we get a pullback down into the 21-week and 10-week moving averages, I would consider that a potential buying opportunity at the moment. A break of $16.50 likely creates an issue for the bulls though and could put the 50-week moving average on the table. 

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell


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