Why Is Kaixin Stock Trading Lower In Tuesday's Premarket?

Kaixin Holdings (NASDAQ:KXIN) shares declined 5.08% in Tuesday’s premarket session, extending losses from Monday’s regular trading close.

The premarket decline for Kaixin Holdings comes as major indices showed mixed performance on Monday. The S&P 500 gained 0.54%. The Nasdaq-100 rose 0.73%. The S&P 500 Energy Sector declined 1.98%

Kaixin Holdings: A Snapshot

Kaixin Holdings operates as China’s leading new auto retail platform specializing in luxury used cars and imported new cars.

The company is actively engaged in research and development, design, manufacturing, and sales of electric vehicles while promoting innovation in next-generation autonomous driving and artificial intelligence technologies.

The company generates revenues from sales of used cars, as well as fees obtained from its role as a channel partner for third-party auto financing and other value-added service providers.

Technical Analysis

Currently, Kaixin Holdings is trading 87.8% below its 20-day simple moving average (SMA) and 93% below its 100-day SMA, indicating a significant bearish trend. Over the past 12 months, shares have decreased by 97.02%, positioning the stock much closer to its 52-week low of $1.08 than its high of $55.50, reflecting a challenging year for the company.

The RSI is at 28.76, suggesting that the stock is in oversold territory, which could indicate a potential for a rebound. Meanwhile, the MACD is below its signal line, reinforcing the bearish sentiment surrounding the stock.

The combination of an oversold RSI and bearish MACD suggests mixed momentum, indicating that while the stock may be oversold, the overall trend remains negative.

• Key Resistance: $1.50
• Key Support: $1.00

KXIN Price Action: Kaixin Hldgs shares were down 5.04% at $1.12 during premarket trading on Tuesday, according to Benzinga Pro data.

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