China Stock Investment Advisory
Shanghai Composite Index Price Forecast Trade Plan
Low-Risk High-Reward Trade Plan
01/08/20 - Shanghai Composite Index Update
The Shanghai index has cointinued higher all of last December. In fact today we issued a new buy recommendation on a major Chinese ecommerce stock listed on the NYSE to our Invest2Success Investment Stock Advisory Service subscribers that include buy area price targets along with stop-loss and take profit price area targets.
Our bullish low-risk high-reward trade-plan forecast below continues to be in effect. On the weekly timeframe chart above we have two buy signals, one in the first week of August and now the second one in the first week of this December with 3,350 and 3,600 as future price targets.
11/18/19 - Buy Shanghai Composite Index - 000001.SS
Buy Entry: 2,884.08 to 2,911.39
Take Profit Price Targets: 3,063.19 to 3,095.86, 3,179.19 to 3,213.41, 3,404.15 to 3,438.07, 3,558.08 to 3,594.61
Nio Electric Cars China Sales Increase
January 08 2020 - Nio Sales Jump But Tesla Cuts Price On This Made-In-China Car By Investors Business Daily
Nio (NIO) bucked the soft market for China auto sales to post its fifth straight month of delivery gains in December, as Tesla (TSLA) CEO Elon Musk heads to Shanghai to deliver the first made-in-China electric cars. Nio stock and Tesla stock reversed in opposing directions.
Nio delivered 3,170 vehicles in December, up 25.4% month over month. Both the five-seater ES6 premium electric SUV and the seven-seater ES8 posted strong gains.
For all of 2019, Nio reported 20,565 deliveries. That modestly outpaced the so-called Tesla of China's own estimate of 20,300 deliveries for the full year and represented a 78% surge from 2018, despite sales cratering in the first half of 2019 amid a massive SUV recall and major layoffs.
"December marked the fifth consecutive month of increasing deliveries for Nio despite the continuous softness of the overall auto industry," said CEO William Bin Li, "and in particular, the significant decline of the electric vehicle sales in the second half of 2019."
But headwinds are growing. Tesla's drive to localize sourcing for electric cars for the Chinese market could lead to significantly lower prices and bigger market share in 2020, sources told Bloomberg. Nio plans to start selling a smaller electric "coupe" SUV next year, as Tesla begins to churn out locally made Model 3 sedans in China.
On Tuesday, Tesla CEO Elon Musk plans to attend a ceremony to mark the first deliveries of made-in-China electric cars to customers, sources told Bloomberg.
Nio also warned Dec. 30 that its cash balance is not enough for working capital and liquidity requirements in the next 12 months. It's seeking external equity or debt financing.
Shares reversed sharply lower to close down 3.9% at 3.68 on the stock market today, after surging as much as 10% earlier Monday.
Nio stock soared 54% on Dec. 30, retaking the 200-day line, after the maker of electric cars delivered a big earnings beat. Nio stock has been heavily shorted. The stock is going through a bottoming phase but cleared resistance at 4 last week.
Tesla stock reversed higher to finish up 1.9% after Friday's rally, which came as Q4 deliveries beat Wall Street's estimates. Shares are extended from a 361.30 cup-with-handle buy point.
Among other Chinese electric-car stocks, Kandi (KNDI) ended flat Monday, and BYD (BYDDF) gave up 0.6%.
General Motors (GM) lost 1.3% and Ford Motor (F) eased 0.5% after Q4 U.S. auto sales fell for both automakers. GM and Ford have yet to report Q4 China auto sales, but Q3 sales in that country slumped 18% and 30% respectively.
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