Lixiang Education Holding Co.

The company

Lixiang Education Holding Co. Ltd. (NASDAQ: LXEH) is one of the top ten private primary and secondary education service providers in Zhejiang Province. It was established in September 2003 with nearly 20 years of history, mainly delivering primary and secondary private education. They offer standard PRC curriculum programs. The school features bilingual teaching with small-sized classes, boarding management, advanced educational concepts, modern teaching facilities, and scientific management. The School has been widely recognized by government authorities, communities, and parents.

Is LXEH a good opportunity?

We found fantastic health in the financial part of the company, it has grown constantly and last year they started in the stock exchange. COVID-19 has been difficult for the business and 2020

earnings fell 28% however LXEHhas been fantastic administration during the last 10 years, The levels of its debts are low, The PER is 22.1 and compared with the services industry PER which it is in 18.1.

Technical Analysis

Volatility has been constant for the last six months. The stock price started to fall on July 15 with a 39% depreciation. The price has respected the first Fibonacci resistance at $ 9.47 and has returned to $ 7 71 almost 4 times since July. MACD and RSI remain in the neutral zone, for a trend change we have to wait to break the price at $ 9.47 and wait for a signal in our indicators, take a position in the support at $ 7.71 and sell near the resistance mean a profit of twenty-one%.