There are investments that have nothing to do with the chart, with technical analysis. Obviously, you keep an eye out to check that things are not too bad (or too good) to try to get into the best time. And this is where technical analysis once again proves to be very important.
I had decided to invest in Xiaomi already in January, following the budgets, the price/earnings ratio, the cashflow, constantly growing.
Not to mention that touching the products first hand, you can see the incredible growth that the Chinese company from Beijing in terms of quality.
There are already those who call it “the Chinese Apple” and in my opinion rightly so.
Collaboration with various automotive companies, expansion of the tech sector, investment in 5G, in artificial intelligence.
All things that let us think about possible growth.
Obviously, the government problems with the United States do not help, Xiaomi currently delisted from the Nasdaq, due to the ban wanted by Trump, therefore only available in Honk Kong or Frankfurt (the market I have chosen).
I also had to rely on my broker and not the bank to buy the underlying, which may discourage investors who do not rely on an investment broker.
I don’t think the tense situation can go on much longer, especially with the new Biden government.
The United States will also have to take a step back, China is a world economic power and it is no good for anyone to push this wall forward.
A possible relaxation agreement would lead the stock to grow as it should.
Returning to the technical analysis: in January the price action was definitely too extended, I was expecting a pullback that actually took place on January 14-15.
I was tempted to enter but seeing the trend of the Nasdaq which began to lose points and the relative proximity of the earnings of March, I decided to wait until the end of March.
In the meantime, the bearish phase continued its path up to the SMA 200, which coincided with an important level of volumetric analysis (I mention it in an image, these are analyzes that I will reserve for the private group, which go a little deeper ).
The day after the Earnings came out, I bought the shares.
From an analytical point of view, the first target is € 3
Second target € 3.8-4
The potential for growth is very high in my opinion, so this for me is a long-term investment, with possible multiple exits and entries over time (which is the way I prefer to operate).
As usual, I also attach the open position.
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𝐷𝐼𝑆𝐶𝐿𝐴𝐼𝑀𝐸𝑅: 𝐼 𝑎𝑚 𝑛𝑜𝑡 𝑎 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑎𝑑𝑣𝑖𝑠𝑜𝑟 𝑛𝑜𝑟 𝑎 𝐶𝑃𝐴. 𝑇ℎ𝑒𝑠𝑒 𝑝𝑜𝑠𝑡𝑠, 𝑣𝑖𝑑𝑒𝑜𝑠, 𝑎𝑛𝑑 𝑎𝑛𝑦 𝑜𝑡ℎ𝑒𝑟 𝑐𝑜𝑛𝑡𝑒𝑛𝑡𝑠 𝑎𝑟𝑒 𝑓𝑜𝑟 𝑒𝑑𝑢𝑐𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑎𝑛𝑑 𝑒𝑛𝑡𝑒𝑟𝑡𝑎𝑖𝑛𝑚𝑒𝑛𝑡 𝑝𝑢𝑟𝑝𝑜𝑠𝑒𝑠 𝑜𝑛𝑙𝑦. 𝐼𝑛𝑣𝑒𝑠𝑡𝑖𝑛𝑔 𝑜𝑓 𝑎𝑛𝑦 𝑘𝑖𝑛𝑑 𝑖𝑛𝑣𝑜𝑙𝑣𝑒𝑠 𝑟𝑖𝑠𝑘. 𝑊ℎ𝑖𝑙𝑒 𝑖𝑡 𝑖𝑠 𝑝𝑜𝑠𝑠𝑖𝑏𝑙𝑒 𝑡𝑜 𝑚𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑟𝑖𝑠𝑘, 𝑦𝑜𝑢𝑟 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑠 𝑎𝑟𝑒 𝑠𝑜𝑙𝑒𝑙𝑦 𝑦𝑜𝑢𝑟 𝑟𝑒𝑠𝑝𝑜𝑛𝑠𝑖𝑏𝑖𝑙𝑖𝑡𝑦. 𝐼𝑡 𝑖𝑠 𝑖𝑚𝑝𝑒𝑟𝑎𝑡𝑖𝑣𝑒 𝑡ℎ𝑎𝑡 𝑦𝑜𝑢 𝑐𝑜𝑛𝑑𝑢𝑐𝑡 𝑦𝑜𝑢𝑟 𝑜𝑤𝑛 𝑟𝑒𝑠𝑒𝑎𝑟𝑐ℎ. 𝐼 𝑎𝑚 𝑚𝑒𝑟𝑒𝑙𝑦 𝑠ℎ𝑎𝑟𝑖𝑛𝑔 𝑚𝑦 𝑜𝑝𝑖𝑛𝑖𝑜𝑛 𝑤𝑖𝑡ℎ 𝑛𝑜 𝑔𝑢𝑎𝑟𝑎𝑛𝑡𝑒𝑒 𝑜𝑓 𝑔𝑎𝑖𝑛𝑠 𝑜𝑟 𝑙𝑜𝑠𝑠𝑒𝑠 𝑜𝑛 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑠.