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Duolingo stock crashed to its lowest level since August 2024, continuing a downward trend that started in May last year when it peaked at $544. It has dropped by 70% below its all-time high, erasing billions of dollars in value as its valuation plunged to $7.48 billion.

CFO departure concerns as management warns of short-term tradeoffs

Duolingo stock continued its freefall this week after the management announced the transition of its Chief Financial Officer (CFO), Matt Skaruppa, who helped to take it public. He will be replaced by Gillian Munson, who has served on the board since 2019. She also worked at Vimeo, a top video software company. 

It is common for stocks to drop whenever there is a major announcement, such as the resignation of a senior member of the team, such as the Chief Financial Officer (CFO) or the CEO. 

The stock also dropped after the company published its preliminary results for the fourth quarter. These numbers showed that its daily active users (DAU) rose by 30% YoY, while its bookings were above the. The previous guidance of between $329 million and $335 million.

While these numbers were strong, analysts and investors are concerned about profitability as the management guided on more investments, which will lead to some tradeoffs. The CEO said:

“While I’m delighted with our preliminary fourth quarter metrics, we plan to continue to invest meaningfully in the product, even when it involves near-term tradeoffs. We are doing this because our long-term opportunity is to teach billions of people, and while we’ve made incredible progress, we remain early in our journey.”

Wall Street analysts are bullish on DUOL despite the crash 

A closer look at Duolingo’s analysts’ forecasts shows that most of them are still bullish on the company, with the average target of $309, which is up by 91% above the current level. 

This target, however, has been falling in the past few months as the stock has continued falling. It was $329 and $416 one and six months ago, respectively.

Duolingo stock analyst forecast | Source: MarketBeat

BMO Capital Markets upgraded the company on Monday to buy, while Citigroup reiterated its market perform rating. The other bullish analysts are from companies like UBS, Truist, and Bank of America.

Analysts point to the ongoing revenue and user growth, which they believe will be resilient over time. The average estimate is that the annual revenue in 2025 was 37%, followed by 22.7% this year.

READ MORE: Buy Duolingo stock as its growth ambitions are ‘far grander’ than previously thought

One major catalyst that a Bank of America analyst noted was that the company has room to expand its subjects from languages to other areas, a move that will capture more users. Also, analysts point to the growth of gamified learning, an area in which Duolingo has thrived.

The company’s valuation has also improved in the past few months, with the forward price-to-earnings ratio being 14, lower than the sector median of 18.3. This is a cheap valuation multiple for a company that is experiencing double-digit growth.

The Rule-of-40 multiple also shows that it is highly undervalued, as its net income margin is 40% and its forward growth metric is 39%, giving it a multiple of 79%.

Duolingo stock price technical analysis 

DUOL stock chart |Source: TradingView 

The daily timeframe chart shows that the DUOL stock price has been in a strong downward trend in the past few months, moving from a high of $544 in May last year to the current $161.

It formed a big down-gap on November 5 after publishing its financial results. After that, the stock formed an island reversal pattern, which is a consolidation that happens after a big gap. It is usually one of the most common reversal patterns in technical analysis.

However, this island formed a head-and-shoulders pattern and has moved below the neckline. Therefore, the stock will likely continue falling as sellers target the key support level at $150. The stock will then bounce back later this year and possibly retest the key resistance level at $200.

The post Duolingo stock forecast as CEO warns of “near-term tradeoffs” appeared first on Invezz

The crypto market is going up today, with Dash and Story jumping by over 30% in the last 24 hours. Other top gainers were coins like Pepe (PEPE), Optimism (OP), Internet Computer (ICP), and Pudgy Penguins (PENGU). This article explains why the crypto rally is happening today.

Crypto market going up after recent US jobs and inflation data

One reason why the crypto market is going up today is that the US has published mixed macro numbers recently. A report released on Friday showed that the economy created just 50,000 jobs, while the unemployment rate improved to 4.4% 

Another one released on Tuesday revealed that the core consumer inflation softened in December. It moved from 2.7% in November to 2.6% in December, a trend that may continue this year. 

Donald Trump has made affordability a major issue this year as the US moves to the mid-term elections. He has announced a cap on credit card interest rates, barred institutional investors from buying homes, and asked Fannie Mae to start buying mortgage securities worth over $200 billion. 

Trump is also urging American oil companies to boost production, a move he hopes will lead to lower gas prices. Therefore, a combination of soft labor market data and lower inflation will push the Fed to start cutting interest rates.

CLARITY Act markup and vote

The crypto market is going up as investors reflect on the improving regulatory environment in the United States. The Senate has now published the text for the CLARITY Act ahead of the markup event on Thursday. 

There are chances that the Senate will ultimately pass the bill, making it the second major legislation after the GENIUS Act. These bills are aimed at making the United States the crypto capital of the world. 

The SEC is already working on this goal. For example, it has ended various lawsuits that were filed by Gary Gensler’s team. It has also launched a crypto exemption week and approved numerous cryptocurrency ETFs.

SCOTUS ruling on Donald Trump’s tariffs

The crypto market is going up as investors wait for the upcoming ruling on Donald Trump’s tariffs. This ruling is widely expected to happen later today, with a Kalshi poll showing that the odds that they will vote in favor of these tariffs being at 33.8%. These odds have dropped from over 56% in September last year.

SCOTUS ruling odds | Source: Kalshi

A decision to end Trump’s tariffs would be a good thing for the crypto market. In theory, it would lead to lower prices as companies boost imports to the country. 

However, it is worth noting that Trump has some other options to implement the tariffs. Most of these options will only be implemented after a lengthy investigation.

Crypto Fear and Greed Index has jumped

Meanwhile, data shows that the Crypto Fear and Greed Index has rebounded. It has moved from the extreme fear level of 10 in December to the neutral point at 52. Historically, crypto prices do well when the index is in a slow uptrend. They then drop sharply whenever the index moves to the extreme greed zone. 

Crypto Fear and Greed Index | Source: CMC

More data show why the crypto rally is happening. For example, the futures open interest have soared to $146 billion, the highest level in months, while short liquidations soared by 218%

The post Here’s why the crypto market is going up today (Jan. 14) appeared first on Invezz

The Nikkei 225 Index continued its strong rally this week, reaching its highest level on record as the “Takaichi trade” accelerated. Its surge coincided with the ongoing Japanese yen crash. It jumped to a record high of ¥54,435, up by 76% from its lowest point in April last year.

Japan stocks jump as the “Takaichi trade” continues

The Nikkei 225 Index, which tracks the biggest Japanese companies, has been in a strong bull run this year. This rally is part of the so-called “Takaichi trade”, which is named after the Japanese Prime Minister.

Takaichi’s policies have mirrored those of Shinzo Abe, who preferred low interest rates and more government spending. She has already requested billions of dollars in a stimulus package meant to support the economy.

Meanwhile, there are rumors that Takaichi will call for a snap election soon, as she seeks full mandate to lead. She has enjoyed high approval rates since becoming the Prime Minister in October, meaning that she has a good chance of winning by a landslide.

The Nikkei 225 Index and the Topix are also benefiting from the ongoing yen devaluation. Data shows that the USD/JPY exchange rate surged to 159.8, a few points below 162, the highest point in July 2024. It has soared by over 13% from its lowest level in April last year.

A weaker yen normally boosts many Japanese companies that sell products abroad. For one, it makes their products cheaper abroad and then helps to boost exporter profits over time. 

The yen is crashing as concerns that Takaichi’s policies will worsen the country’s finances. This explains why yields of the super-long bonds jumped to record levels. 

South Korea and Japan relations

The Nikkei 225 Index is also soaring as Takaichi courts South Korea as tensions with China continue. The crisis between China and South Korea started after she suggested that her country would be willing to support Taiwan in case of an invasion. 

Takaichi said that she hopes to see more cooperation with South Korea after meeting with President Lee Jae Myung in Tokyo. She said:

“There will be further talks between relevant departments to deepen cooperation, both in terms of the economy and economic security, in ways that are strategic and beneficial to both sides.”

With all this happening, investors are now focusing on the Bank of Japan (BoJ). After hiking rates in December, analysts now expect more tightening in April.

The ongoing Nikkei 225 Index rally also mirrors that of ther Asian indices. For example, South Korea’s Kospi Index has jumped to a record high this year, continuing a trend it started last year. Hong Kong’s Hang Seng Index has also soared.

The best-performing stocks were Toho Zinc, Yaskawa Electric, Shiseido, and Mitsui Mining & Smelting. All these stocks have jumped by over 5% on Wednesday.

Nikkei 225 Index technical analysis

Nikkei Index chart | Source: TradingView

The daily chart shows that the Nikkei 225 Index has soared to a record high. This surge happened after it formed a bullish pennant pattern, which is made up of a vertical line and a symmetrical triangle. It has moved above the important resistance at ¥52,590, its highest point on November 4.

Therefore, the index will likely continue rising as bulls target the key resistance level at ¥55,000. A move below the support at ¥52,590 will invalidate the bullish view.

The post Takaichi trade sparks Nikkei 225 Index bull run and Japanese yen crash appeared first on Invezz

Ethereum price held steady on Wednesday, continuing a trend that has been going on in the past few weeks. ETH token rose to $3,340, and this trend may accelerate in the coming months as it has formed the highly bullish inverse head-and-shoulders pattern, and the spot ETH ETF inflows have continued.

Ethereum price technical analysis points to a surge 

The weekly timeframe chart shows that the ETH price tumbled to a low of $1.360 in April last year and then rebounded to a record high of $4,965 in August. 

It has now retreated and moved into a technical bear market as it moved to the current $3,335. 

A closer look shows that the coin has formed the highly bullish inverted head-and-shoulders pattern. In this case, the head section was at $1,360, and it has just completed the formation of the right shoulder.

At the same time, the Relative Strength Index (RSI) has started to point upwards and crossed the important neutral point at 50. The two lines of the Percentage Price Oscillator (PPO)  indicator have also flat lined at the neutral level.

There are also signs that the coin has invalidated the recently forming bearish flag chart pattern. Therefore, the most likely ETH price forecast is bullish as long as it remains above the right shoulder at $2,663. If this happens, the coin may rebound soon and hit the key resistance level at $4,000, followed by the all-time high of $4,965.

ETH price chart | Source: TradingView 

ETH price has numerous bullish catalysts 

In addition to its strong technicals, the reality is that Ethereum has some of the best fundamentals in the crypto industry.

First, data shows that American investors have started buying spot ETH ETFs this week. Spot Ethereum ETFs had over $129 million in inflows on Tuesday and $5 million a day before that. The funds have now had over $12.57 billion in cumulative inflows, with their total assets rising to nearly $20 billion.

Second, Ethereum has continued to gain its market share across all areas in the crypto industry, including decentralized finance (DeFi) and Real-World Asset (RWA) tokenization, which most analysts believe is the future of finance.

Ethereum has of $152 billion locked in its DeFi ecosystem and $473 billion in its bridged TVL. Its market dominance has jumped to 76%, even as new chains have been launched in the past few years. They include networks like Base, Berachain, Katana, and Monad.

Ethereum has become the most popular chain for handling stablecoin transactions, with the volume rising to over $8 trillion in the last quarter. Its RWA ecosystem has also continued to boom, with top companies like Franklin Templeton and JPMorgan using its chain.

Additionally, BitMine has continued to accumulate the token in the past few months. It has bought over 4 million tokens since July last year and is on track to hit its target of holding 6 million tokens over time.

BitMine has a vote to increase the number of authorized shares from 500 million to 50 billion. This raises the possibility that the company will change its goalpost and decide to accumulate more Ethereum over time.

There are also signs that Ethereum is undervalued. For example, it has a market capitalization to DeFi TVL ratio of 2.64, much lower than Solana’s 3.85 and BSC’s 3.85.

Ethereum price will also likely rebound as the developers work on the upcoming Glamsterdam and Hegota upgrades later this year. These upgrades will boost Ethereum’s speed, making it a faster network. Indeed, there are now questions on the role of general-purpose layer-2 networks as Ethereum will soon match their speeds.

The post Ethereum price prediction: top reasons ETH is about to rocket higher appeared first on Invezz

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Lloyds share price continued its strong bull run this year, and is now hovering at its highest level since September 2008. It has jumped in the last 12 consecutive months, and is up by 430% from its lowest level in 2020. 

This surge has brought its market capitalization to over $80 billion, making it the 14th biggest company in the UK. Still, technicals suggest that the stock may pull back soon.

Why the Lloyds share price has soared 

Lloyds Bank stock price has been in a strong uptrend in the past few months, mirroring the performance of other British banks. Barclays’ stock has jumped by nearly 80% in the last 13 months, while NatWest’s has soared by over 60%.

Other European banks like Unicredit, Societe Generale, and BNP Paribas have been in a strong uptrend in the past few years.

Lloyds Bank has done well as the company’s growth has held steady despite the ongoing growth slowdown in the UK, which is now going through a period of stagflation. Stagflation is characterized by a period of high inflation and slow economic growth, with a recent report showing that the economy contracted by 0.1% in October.

Lloyds share price has also done well as investors anticipate the ending of the motor insurance crisis after last year’s Supreme Court ruling. The company announced £800 million charge for motor finance commission, bringing the total amount to over £1.7 billion.

The most recent results showed that Lloyds Bank’s business made over £3.3 billion statutory profit after tax compared to the £3.8 billion in the same period a year earlier. The decline was because of the motor insurance charge.

Additionally, the management boosted the forward guidance. It now expects that its underlying net income to be £13.6 billion and its return on tangible equity to be 12%.

READ MORE: Top 3 reasons to buy Lloyds Bank shares

Lloyds Bank has continued to reward its shareholders through its buybacks and dividends, a process that will continue because of its capital ratio. It ended the last quarter with a CET1 ratio of 13.8%, which it expects to fall to 13% this year. 

Lloyds executed a £1.75 billion in share buybacks in 2025 and has continued to pay a dividend, with its dividend yield rising to between 4% and 5%.

Still, the main concern about Lloyds is that it has now become a bit overvalued. Its price-to-earnings ratio is 16, while the forward multiple is 12, which are much higher than its historical levels.

Looking ahead, the next key catalyst to watch will be its earnings, which will come out on January 29. These numbers will provide more information about its performance.

Lloyds stock price technical analysis

LLOY stock chart | Source: TradingView

The weekly chart shows that the LLOY stock price has been in a strong bull run in the past few months. However, there is a risk that the stock will lose momentum in the near term. 

For one, the Relative Strength Index (RSI) has formed a rising wedge pattern, which is made up of two ascending and converging trendlines. This means that the RSI will have a bearish breakout, which will happen when the stock retreats. 

Similarly, the Percentage Price Oscillator (PPO) has formed a bearish divergence pattern. At the same time, the stock is much higher than the 50-week and the 100-week Exponential Moving Averages (EMA), meaning that it may go through a mean reversion.

Therefore, the stock may have a bearish breakout soon, potentially to the support at 90p. 

The post Lloyds share price rally accelerates — will this momentum last? appeared first on Invezz

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Salesforce stock price is stuck in a technical bear market, moving by ~34% from its highest point in 2025. It has continued to underperform the broader market as the S&P 500 and Nasdaq 100 indices moved to a record high. So, is this software giant a good buy today?

Salesforce stock crashes amid AI disruption

CRM stock price has been in a strong downward trajectory in the past 12 months as investors remain concerned about the company’s growth trajectory as the artificial intelligence boom continues.

A major concern is that the company’s growth will slow as AI tools start replacing some of the solutions made by Salesforce. At the same time, there are concerns that its AI tools are still in the early stages of adoption.

At the same time, market participants are concerned that the company is now focusing on growth through acquisitions, a strategy it has used for years. Salesforce bought Informatica in 2025 for $8 billion. It also bought more companies like Bluebirds, Convergence.ai, Apromore, Spindle AI, and Doti.

In the past, the company acquired companies like Slack, Mulesoft, and Tableau. In some instances, companies grow by acquisitions when their core businesses are slowing down.

On the positive side, Wall Street analysts are bullish on Salesforce, with a Barclays analyst boosting his forecast from $330 to $338 on Monday. 

CRM stock analyst forecasts | Source: MarketBeat

Goldman Sachs has a buy rating and a target of $330x while RBC analysts boosted the forecast from $250 to $290. The average estimate among 44 analysts is that the stock should jump by 35% to $326.

Salesforce earnings to shed light on its growth 

Looking ahead, the next key catalyst for the Salesforce stock price will be its earnings, which will come out on March 4. These numbers will provide more information on whether the company continued its growth in the last quarter of the year.

Data compiled by Yahoo Finance shows that the average estimate is that its revenue will come in at $11.18 billion, up by 11.90% from the same period in 2024. Its earnings-per-share (EPS) is expected to come in at $3.05, up from the previous $2.78.

Analysts expect Salesforce’s annual revenue to jump to $41.48 billion, up by 9.47% YoY, followed by $46 billion. Some of this growth will be because of its recent acquisitions.

On the positive side, there are signs that the CRM stock is a bargain. Data compiled by Seeking Alpha shows that it has a forward PE ratio of 22, much lower than the five-year average of 35 and the sector median of 25.

Salesforce share price technical analysis

CRM stock chart | Source: TradingView 

The weekly chart shows that the CRM stock price has crashed from a high of $367 in December 2024 to the current $241. It has moved below the 50% Fibonacci Retracement level at $246.

The stock has moved below the 50-week and 200-week Weighted Moving Averages (WMA), a sign that bears are in control for now  

It has also formed a bearish flag pattern, which is made up of a vertical line and a descending channel. This pattern normally leads to a strong bearish breakout.

Therefore, the most likely scenario is where the stock drops to the lower side of the channel at $225. A move below that support will point to more downside, potentially to the key support level at $200.

On the other hand, a move above the upper side of the channel will point to more upside and invalidate the bearish outlook. 

The post Salesforce stock has imploded: Is it a bargain or a value trap? appeared first on Invezz

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Tempus AI stock remains in a bear market after crashing by 36% from its highest point in September last year. It has slumped to $66, with its market capitalization slumping from $17.8 billion in October to the current $12.1 billion. This article explores some of the top reasons why the TEM stock may rebound in the coming weeks.

Tempus AI reports record contract value

One main catalyst for the TEM stock price is that the company reported a surge in its Total Contract Value (TVL). Its value jumped to a record high of $1.1 billion as top companies in the pharmaceutical industry embraced its technology. 

It entered deals with top companies like Pfizer, Eli Lilly, GlaxoSmithKline, and AstraZeneca. At the same time, many biotech companies like Aspera and Whitehawk have started using its solutions.

These numbers mean that the company’s growth accelerated in the last quarter of the year as the artificial boom gained momentum. The most recent results showed that its revenue surged by 84% in the third quarter to $334 million.

More data showed how the company’s growth was supercharged in the third quarter. For example, the gross profit nearly doubled to over $209 million, while the number of clinical tests soared by 33% to 217,000.

Most of its revenue was in its oncology testing, which made $139 million. It hereditary testing business made over $102 million, while the data and services rose to $81 million. 

Tempus AI’s business will likely continue growing because of the size of its market and the fact that all companies are seeking to leverage the concept of artificial intelligence in their operations. 

Tempus’ growth will accelerate

Most notably, a recent report showed that the use of AI in the pharmaceutical industry rose to $1.9 billion in 2025 and analysts anticipate it will reach $16 billion by 2034. Another report estimates that the industry will soar to over $25 billion by 2030. If this is correct, it means that Tempus AI will have a leading market share in it.

Additionally, the company has room to grow its business into other areas, replicating its success in the oncology business.

Wall Street analysts believe that the company’s fourth quarter revenue rose by 80% to $360 million. Judging by its recent statement and its history, chances are that its revenue will be much higher than what analysts expect. 

A $360 million revenue will bring its annual figure to $1.26 billion, up by 82% from a year earlier. Analysts also expect its revenue to hit $1.57 billion in the coming year. The company will also break even soon.

Tempus AI is also not all that expensive, especially when you consider the rule of 40 metric. Its forward revenue growth is 82% against a net income margin of 18%. This brings its metric to 64%, which is good.

Tempus AI stock price technical analysis 

TEM stock chart | Source: TradingView

The daily chart shows that the TEM stock price has slumped in the past few months. It has dropped from a high of $104.30 to the current $66. 

A closer look shows that the stock remains above the ascending trendline, which connects the lowest swings in January, April, and December last year. This line has provided it with a substantial support level.

The Supertrend indicator has turned green, which is a highly bullish sign. Therefore, the most likely scenario is where Tempus AI stock rebounds and hits $104, its highest point last year. Such a move would signal a 47% surge from the current level.

The post Here’s why the Tempus AI stock may surge 47% soon appeared first on Invezz

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Hims & Hers stock has nosedived in the past few months. It has dived by over 56% from its highest point in July last year and is now hovering at its lowest level since April. 

The ongoing slump has led to a big decline in its market capitalization from over $14.85 billion to the current $7.7 billion. So, is it a good buy as the short interest remains at an elevated level? 

Hims & Hers stock short interest has soared

Third-party data shows that HIMS has moved from being one of the hottest companies in Wall Street into one of the most loathed. Data shows that the short interest has remained at an elevated level. 

Seeking Alpha data places the short interest at 29%, while MarketBeat has the figure at 34%. The ongoing short-selling activity is attributed to several important issues facing the company.

For example, data shows that its insiders have continued to sell their shares in the past few quarters. They have sold shares worth over $155 million in the last 12 months. Some of the most notable sellers are Oluyemi Okupe, the CFO, Deborah Autor, a director, and Andrew Dudum, the CEO. Insiders hold a 17.7% stake in the company.

Hims & Hers stock price has also crashed because of the softness in the weight loss category, which has come under pressure in the past few months. The issue is on the sale of compounded versions of popular GLP drugs, a business that pushed its revenue to a record high.

For example, Novo Nordisk ended its partnership with Hims & Hers, accusing the company of illegal compounding. Also, the company received a warning from the FDA on claims that its compounded drugs were similar to those made by companies like Eli Lilly and Novo Nordisk. Therefore, the ongoing stock crash is a sign that investors expect the crisis to continue in the near term.

Hims & Hers stock has also cratered as investors remain concerned about its growth trajectory. The average estimate for its 2025 revenue among analysts is $2.35 billion, up by 58% from what it made in 2024. 

Analysts expect that its revenue slowdown will start this year, moving to $2.76 billion, up by 17.80% from what it made last year. One reason for the slowdown is that the company slashed the price of its GLP drugs by up to 20%, a sign that its growth is slowing.

Hims management sees more grow ahead 

Hims & Hers management believes that there is room for the company to continue growing in the coming years. 

For one, the company aims to expand its business in other markets, including Canada, Australia, Brazil,  and more European countries. It expects that the international segment will bring in over $1 billion in annual revenue over time.

The most recent results showed that Hims & Hers subscribers jumped by 25% in the last quarter to over 2.5 million, while its revenue jumped by 49% to $599 million.

Analysts expect the upcoming results to show that its revenue rose by 28% in the fourth quarter to $617 million.

At the same time, Citigroup has placed a sell rating on the company, while Weiss and Bank of America have a neutral rating. The average estimate among analysts is $45.50, up by 45% from the current level.

HIMS stock price technical analysis 

HIMS stock chart | Source: TradingView

The daily timeframe chart shows that the HIMS stock price has crashed, moving from a high of $70.33 in July to the current $31. It recently crashed below the key support level at $32.97, its lowest on November 24, invalidating the forming double-bottom pattern.

The chart also shows that the stock formed a death cross pattern, which happens when the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. It is one of the most common bearish continuation signs in technical analysis.

Therefore, the stock will likely continue falling as sellers target the next key support level at $25. 

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The Kospi Composite Index continued its strong bull run, hitting its highest level on record. It jumped to a record high of KRW 4,680, up by over 105% from its lowest level in 2025. This surge coincided with the ongoing South Korean won plunge, which rose to KRW 1,475, up by 3% above the lowest level this month.

Kospi Index nears president’s target of KRW 5,000

The Kospi Composite Index has been in a strong rally since the new president promised to boost its performance to KRW 5,000, something that many analysts believed was unachievable as it was trading at KRW 2,700 when he made the pledge.

The index soared today as the main stock market exchange said that it would increase the number of trading hours to meet the rising demand for shares, especially by retail traders. It will increase the trading hours from 6.5 hours today to 12 hours in the coming months.

The main catalyst for the ongoing Kospi Index surge is the ongoing AI boom, which has led to a big increase in demand for products made by companies like Samsung, SK Hynix, and Hanmi Semiconductor. Samsung and SK Hynix are the two biggest companies in the index with a market capitalization of over $612 billion and $350 billion, respectively.

The best-performing companies in the Kospi Index this year are companies like Kumho Electric, Keyang Electric Machinery, Hanwa Systems, Hyundai Autoever, and Hyundai Glovis.

Meanwhile, the index has jumped because the ongoing South Korean won plunge, with the USD/KRW nearing its highest level in 2025. It has jumped from a low of 1,430 on December 25 to the current 1,473, and is now in its worst performance since 1998.

A deteriorating South Korean won boosts the country’s stock market by making products more affordable abroad, which may help to boost their market share over time.

Meanwhile, the South Korean Central Bank has maintained a cautious approach as it worked to stabilize the economy amid the ongoing tariffs with the United States. The bank slashed interest rates by 0.25% to 2.5% in May and left them there. The lower rates have pushed more investors to move to the stock market.

Kospi Composite Index technical analysis 

KOSPI Index chart | Source: TradingView 

The daily timeframe chart shows that the Kospi Composite Index has been in a strong uptrend in the past few months, moving from a low of KRW 2,281 in April to KRW 4,654.

It has moved above the important resistance level at KRW 4,223, its highest level on November 3rd. Such a move will invalidate the double-top pattern, a risky bearish reversal sign.

The index remains above all moving averages, while the Average Directional Index (ADX) has moved to 84, a sign that bulls maintained the momentum.

Also, the Relative Strength Index (RSI) has moved to the overbought level of 80. Therefore, the most likely scenario is where the index continues rising as bulls target the key resistance level at KRW 5,000 later this year.

The alternative scenario is where the index retreats and retests the key support level at KRW 4,223, down by nearly 10% from the current level.

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Nio stock price jumped by over 2% in Hong Kong, continuing a cautious recovery that started on Friday. It rose to a high of $38 after a proposal by the European Union that may help boost sales of Chinese EVs in the region. 

EU considers plan to replace tariffs on Chinese vehicles

Nio and other Chinese EV companies rose in Hong Kong and Beijing after a report suggested that EU officials were considering a minimum price system to replace import tariffs. Such a move would be highly positive for these companies as it would boost their sales and profit margins.

The plan will see Chinese vehicle companies submit their plans on their minimum import prices, annual volume limits, and future investments in the region. Such a move will remove the 35% tariff that these companies pay today.

Nio, a top Chinese manufacturer, would benefit from access to the European market, where it has attempted to gain market share over the years.

Europe is an ideal market because of its huge population of over 600 million people, who are much wealthier than those in other places. It would also help it to diversify its business from China, a country whose market has become highly saturated, with companies like Xiaomi, SAIC, XPeng, and Li Auto competing for market share.

Nio deliveries are doing well 

In a recent note, Nio said that its business was doing well, with demand for its vehicles continuing the uptrend. 

The company said that it delivered 48,135 vehicles in December, up by 54.6% from the same period a year earlier. It sold 124,807 vehicles in the fourth quarter, up by 71% YoY. This growth brought its annual deliveries to 326,028 vehicles, up by 47% YoY.

In contrast, Tesla delivered 418,227 vehicles in the fourth quarter, a 16% plunge from the same period in 2024. The company delivered over 97,000 vehicles in China in December.

Nio’s growth is being driven by ES-8, its sports utility vehicle (SUV), which has surpassed 40,000 deliveries, making it one of the fastest growing models in its category.

The most recent quarterly results showed that Nio made $3 billion in revenue in the third quarter while its gross margin jumped to 13.9% from the previous 10.9%.

Still, the main challenge that Nio faces is that its business has never been profitable, which has pushed it to raise money and dilute its shareholders. The company recently raised over $1.16 billion by selling American shares.

Nio stock price technical analysis 

Nio shares chart | Source: TradingView 

The daily timeframe chart shows that the Nio share price has been in a strong downward spiral in the past few months, moving from a high of $61.80 in October to the current $37.

It has formed a head-and-shoulders pattern, a common bearish reversal pattern, a common bearish reversal sign. 

The stock is about to form a death cross, which happens when the 50-day and 200-day Exponential Moving Averages (EMA). This pattern is one of the most bearish chart patterns in technical analysis.

Nio has also invalidated the double-bottom pattern at $37.80 and the neckline at $42.9. A double-bottom is one of the most common bullish reversal chart patterns.

The stock has now moved below the 61.8% Fibonacci Retracement level at $38.6. Moving below this level is important as most rebounds normally happen at this point.

Therefore, the most likely Nio share price forecast is bearish, with the next key support level to watch being at $32, the 78.7% Fibonacci Retracement level, which is 16% below the current level.

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