Swing Trading Plan
Holding Period
3-8 trading days
Expected figures are probability-weighted from our historical pattern database; Trade R:R is measured from the entry, target and stop levels.
Current Setup
LI is forming a rounding bottom pattern at current price $19.27, positioned 22.66% above its 52-week low and 39.83% below its 52-week high. The pattern structure scores 10.0/15 with volume at 10.0/12 and breakout quality at 12.0/13, yielding an overall score of 67.0/98 and 60.84% win probability. Current volume of 5.87M shares runs 1.98x the 20-day average, supporting pattern validity. Key support rests at $15.71; resistance at $22.60. The conservative measured move target is $20.10. RSI at 59.64 indicates neutral momentum without overbought conditions.
Stock Context
Li Auto launched the all-new L9 Livis on May 15, 2026, showcasing advancements in design, chassis, range extension system, safety, and intelligence. The company delivered 95,142 vehicles in Q1 2026, exceeding its guidance of 85,000 to 90,000 units. Li Auto has set a 20% year-on-year sales growth target for 2026, aiming to deliver approximately 490,000 vehicles. The board approved a $1.0 billion share repurchase program in March 2026, signaling confidence. The timing is critical: Q1 2026 earnings will be reported May 28, 2026, just 13 days after this pattern detection. Recent momentum suggests investor optimism around product launches and beat guidance.
What to Expect
A successful rounding bottom breakout from LI would require the stock to clear the $22.60 resistance level with volume exceeding 5.87M shares (the current relative volume baseline). The conservative target sits at $20.10, representing roughly 4.3% upside from current levels—a modest but meaningful advance that aligns with historical rounding bottom projections. The setup fails if price falls below the $15.71 support, which would negate the pattern structure. With a 60.84% win probability and beta of 0.65 (lower volatility profile than the market), the risk/reward appears balanced for pattern followers. Volume confirmation at the breakout is critical given the 1.98x relative volume already present.
Risk Factors
The most immediate catalyst risk is Q1 2026 earnings release on May 28, 2026, occurring within the pattern formation window and potentially causing volatile repricing. Q4 2025 revenue declined 35% year-over-year to 28.8 billion yuan; the company barely returned to profitability with 20.2 million yuan net income while recording a 442.6 million yuan operating loss, flagging profitability concerns. Historical performance shows structural challenges. Additionally, institutional investor activity shows 88 investors added LI shares while 102 decreased positions in Q4 2025, with major holders like Brilliance Asset Management and RWC Asset Advisors fully exiting positions, signaling mixed institutional sentiment. Sector competition in Chinese EV manufacturing remains intense. Beta of 0.65 suggests lower volatility, but China-specific geopolitical and regulatory risks could disrupt the setup.
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is LI a good swing trade?
LI scored 67 out of 98 on our rounding bottom scan, with a 61% historical win probability over a 3-8 trading days hold. Moderate setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $19.27, with a conservative target of $20.10 and a stop loss at $18.70.
What would invalidate this rounding bottom setup?
A close below the stop loss at $18.70 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical rounding bottom setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.