Kandi Technologies Group, Inc (KNDI) designs, manufactures and commercializes electric vehicles in China. The company’s stock is currently trading around $7.75 in a 52 week range of $3.37-$9.20. The stock has performed very well this year, rallying nearly 95% year to date. Options flow in KNDI has been relatively bullish over the past week leading us to believe there is an opportunity for a long stock swing trade in KNDI. Options markets are extremely bullish on KNDI with a current open interest put/call ratio of 0.31. KNDO is also trading in bullish territory according to the Ichimoku cloud. The stock is sitting right on short term support at $7.63 and this recent pullback in the stock offers an opportunity to get long. Buying stock at current levels with a stop below longer term support at $7.15 presents a good risk to reward set up.
Trade: Buying shares of KNDI at $7.75 with a stop at $6.75
Risk: $1.00 per share
Target #1: $8.25
Target #2: $8.75
Target #3: $9.75
