Eben@CANSLIM ResearchLi Auto (LI) remains entrenched in a Stage 4 decline, trading at $12.25, well below its declining 30-week moving average and 54% off its 52-week high. The stock has failed all eight trend-template checks, confirming a persistent downtrend with no signs of accumulation. The 47-week base is a faulty deep pattern with a 56% depth, historically associated with elevated failure rates, reinforcing the bearish outlook.
Technical Analysis
As of 2026-08-25 · Close $12.25
Stage Analysis
Stage 4 (Declining) — Price below a declining 30-week MA — downtrend (30-week MA 6-week slope: -3.96%)
Detected Patterns — What the Market Is Watching
- Deep Base (>33% — elevated failure rate) — depth 56.0%, length 47 weeks, pivot $26.69. Base formed from 2025-09-17 (left-side high) to 2026-08-25, with the low of $11.74 set on 2026-06-30
⚠️ Faulty cup warning: the base is 56.0% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.
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