li auto inc li fell over 6 on thursday in sympathy with tesla which dropped almost 10 after reporting its firstquarter earnings results which showed a margin decline tesla has been slashing the prices of its ev models to increase demand some worry the move could start a price war which could reduce profits across the industry lower margins could weigh heavily on li auto which tuesday announced plans to triple its product line up to 11 models by 2025 read more here li’s negative reaction to tesla’s earnings caused the stock to negate the uptrend it had been trading in since march 15 when the stock bounced into the trend after forming a doublebottom pattern near the 20 level want direct analysis find me in the bz pro lounge click here for a free trial the li auto chart after topping out at the 2627 mark on monday li auto began to retrace within its uptrend on wednesday the stock printed a doji candlestick indicating a bounce was on the horizon but tesla’s news forced the candlestick to negate and li auto fell lower negating the uptrend   although the uptrend has been negated a downtrend hasn’t yet been confirmed for a downtrend to confirm the stock will eventually have to bounce up to form a lower high under the 26 mark bearish traders can watch for the stock to print a bearish candlestick such as a doji or shooting star candlestick under that area for a possible entry   li auto has two gaps above on the chart with the first gap between 2369 and 2431 gaps fill about 90 of the time which makes an eventual rise over 24 the most likely scenario if that happens li auto may find resistance at the upper range of the gap   bullish traders want to see big bullish volume come in and break li auto up through the closest gap and then for a retracement to cause the stock to form a higher low to indicate a bear trap occurred and the stock will reverse course back into an uptrend   li auto has resistance above at 2362 and 2642 and support below at 2080 and 1883 read next nio falls in sympathy with tesla following q1 earnings the bull bear case for the stock