Chart Advisor: Chinese EV Stock Quietly Builds Momentum

By Tom Bruni, CMT

1/ Retail Interest Returns to Intel

2/ AI Energy Bears Hope This Resistance Holds

3/ Chinese EV Stock Quietly Builds Momentum

4/ No Retail $LUV For Southwest Despite Strength

5/ Finally Time to Fade European Financials

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1/

Retail Interest Returns to Intel

Semiconductor stocks have been back on the menu for retail investors since Nvidia’s earnings results helped it regain momentum. Intel ($INTC) has been stuck in the mud as the company figures out its next direction, but Stocktwits data suggests retail is the most bullish on the laggard all year.

From a technical perspective, the monthly chart shows Intel has stabilized above long-term support near 17-18. Prices had previously broken below that level twice and reversed sharply, making it a key area of interest. Additionally, there’s a bullish momentum divergence signaling that sellers are losing strength and a tide shift may be underway.

For investors betting on a turnaround, using the 17 to 18 support level to trade against would be effective, while traders seeking more confirmation would like to see a breakout above 25. Should the stock regain that level, it can start to rebuild itself back toward the top of its multi-decade range, which would be 2 to 3 times higher than current levels.

2/

AI Energy Bears Hope This Resistance Holds

Despite the AI trade being in full swing, Stocktwits sentiment in nuclear energy stock Oklo Inc. ($OKLO) is decidedly negative, and message volumes have fallen significantly. 

Despite momentum stalling over the last two weeks, the stock has consolidated nicely between support at 44 and resistance near 55 to 60. The Relative Strength Index (RSI) also shows that momentum maintained its bullish range throughout the last year of upside and its early 2025 correction.

Bulls will be watching for a breakout above 60 to confirm that the next leg higher, towards 104, has started. Bears, on the other hand, are waiting for a break below 44 to signify a larger pullback toward the 200-day moving average, where prices have found support previously. With retail sentiment and message volume stalling, an upside breakout could catch people offside and fuel the next leg of upside.

3/

Chinese EV Stock Quietly Builds Momentum

Chinese electric vehicle maker XPeng Inc. ($XPEV) is quietly consolidating its recent gains as retail sentiment pushes into bearish territory. The EV space remains in the geopolitical crosshairs, and high interest rates are weighing on demand, providing the bears with ample reasons to bet against the company.

Yet, the stock continues to digest gains well, with momentum remaining in a bullish range, the 200-day moving average starting to catch up, and prices beginning to move toward the top of their range. Bulls want to see a firm breakout above 23.50 to confirm the next leg of this structural uptrend, which would target 36-39 over the long term.

4/

No Retail $LUV For Southwest Despite Strength

Airlines have remained under the radar after giving back much of their recent gains, but one stock is standing out. Southwest Airlines ($LUV) sentiment is in bearish territory, and message volume has remained subdued as retail investors seek market plays with stronger momentum.

From a technical perspective, the monthly chart shows that Southwest could see blue skies ahead if it can clear resistance near 35-37. Despite the pullback, prices have stabilized above long-term support in the low 20s, and momentum has maintained its bullish range.

If the bull market is to continue, investors will want to see rotation beneath the surface, and airlines could be a beneficiary. In Southwest’s case, a decisive move above 37 would signal the start of a new uptrend that targets its all-time highs.

5/

Finally Time to Fade European Financials

To balance out the bullish trades, we’ve got one bearish setup worth looking at. European Financials ($EUFN) have been on fire, as international stocks have caught a bid, rising for nine straight weeks. However, prices are now reversing after reaching new marginal highs, and this week’s weakness has confirmed a bearish RSI divergence.

If prices stay below their recent highs of 32.35, then bears have a logical level to trade against on the short side. Short-term support sits near 29 to 29.50, but the 200-day moving average (which has acted as support over the last year) is below that, near 26-27. 

Fading strong trends is a tough way to make money in markets, but in this case, the reward/risk favors taking some off the table if you’re a bull or testing the short side as a bear. Stocktwits sentiment has shifted into bearish territory here, signaling retail may be looking for this hot sector to cool down.

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Originally posted 11th June 2025