KARS ETF Hits Golden Cross Powered By Tesla, Geely, Xpeng, Li – KraneShares Electric Vehicles and Future Mobility Index ETF (ARCA:KARS)

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By Ronald Tech

The KraneShares Electric Vehicles and Future Mobility Index ETF KARS has just hit a significant milestone, making a Golden Cross that has investors’ attention piqued and driving optimism.

The ETF, which tracks the global transition to electric vehicles (EVs) and future mobility, is experiencing a surge, with its price moving above its five, 20 and 50-day exponential moving averages, signaling strong bullish momentum.

The ETF is benefitting from its top-tier holdings, which include a mix of the EV sector’s biggest names: BYD Co Ltd BYDDF, Tesla Inc. TSLA and Geely Automobile Holdings Ltd GELYF. It includes emerging players as well: Li Auto Inc LI, XPeng Inc XPEV and Arcadium Lithium PLC ALTM.

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KARS ETF Drives Up A Golden Cross

With a share price of $23.30, KARS is in the sweet spot for technical analysts. The 50-day simple moving average (SMA) has crossed over the 200-day SMA, triggering the Golden Cross. The ETF’s eight-day SMA is at $22.52, the 20-day at $22.17 and the 50-day at $21.35. All these indicators show bullish signals, reinforcing the bullish sentiment surrounding the ETF.

It’s currently trading at a price above its 200-day SMA of $21.08, further solidifying the case for upside potential.

The ETF is up 5% over the past five days and its 52-week high of $26.10 is well within reach. Despite a year-to-date decline of 7.32%, the recent uptick signals that KARS may be bouncing back, driven largely by the outperformance of its key holdings.

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KARS Top Holdings Driving The Charge

KraneShares’ KARS ETF is led by major EV players. BYD, the Chinese electric vehicle titan, is its top holding, making up 4.15% of the fund. Tesla (TSLA), a staple in the EV world, follows closely behind at 4.13%, while Geely, Xpeng and Li Auto continue to support the ETF’s forward momentum.

Tesla and BYD have been standouts this year, with BYD up 36.61% year-to-date and Tesla climbing 19.52%.

Meanwhile, Li Auto has faced some struggles, down 25.96% this year, but the market is still hungry for electric vehicle exposure.

A Bullish Outlook, But Some Caution

While the Golden Cross signals bullish movement, KARS’ Relative Strength Index (RSI) is currently at 58.9, suggesting the ETF is nearing overbought territory. With a MACD indicator of 0.33, there’s still potential for more upside, but cautious optimism remains prudent as the market watches for any signs of cooling.

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