Cango Outlook: A Bearish Technical Profile Amid Mixed Fundamentals

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Market Snapshot

Headline Takeaway: Cango (CANG.N) is showing weak technical signals and a bearish trend, with a recent price rise that may not be supported by fundamentals. Position: Cautious avoidance recommended.

News Highlights

Recent news headlines highlight shifting policy landscapes and global economic adjustments. A major story involves changes to US vaccine policy, which could indirectly affect global supply chains and economic stability. Meanwhile, Trump’s fast-tracking of uranium mining suggests a policy shift in energy and materials markets that could indirectly influence commodities and inflation expectations. Lastly, China’s factory activity showed a slight improvement in May, signaling potential global trade stabilization.

Analyst Views & Fundamentals

Cango is currently receiving a simple average analyst rating of 5.00 and a performance-weighted rating of 2.31, based on one recent "Strong Buy" recommendation from HC Wainwright & Co. However, the analyst with the highest influence, Kevin Dede, has a historical win rate of just 33.3% and a poor average return of -5.06%. This indicates significant dispersion in analyst sentiment, with the current price trend rising by 14.50% not aligning well with these mixed expectations.

On the fundamentals, the model scores Cango with an internal diagnostic score of 6.95 (of 10), indicating moderate quality. Here are key factors and values:

• Return on Equity (ROE) YoY growth: -48.09% (Internal score: 2)
• Profit-to-Market Value: 47.77% (Internal score: 2)
• Asset-to-Market Value: -44.18% (Internal score: 3)
• Revenue-to-Market Value: 116.35% (Internal score: 1)
• Inventory turnover days: 232.29 days (Internal score: 3)

This suggests that while Cango has a relatively strong asset profile, its profitability and return metrics are under pressure.

Money-Flow Trends

Fund flows tell a mixed story. While large and extra-large money flows show positive trends (large inflow ratio of 47.5% and extra-large at 51.2%), medium and small flows are negative (medium at 42.2%, small at 43.0%). Overall, the internal diagnostic score for fund flows is 7.74 (of 10), indicating that institutional money is flowing in, but retail investors are cautious. The block trading inflow ratio at 50.8% suggests strong interest from larger investors, even as the broader market remains skeptical.

Key Technical Signals

Technically, Cango is in a weak state with an internal diagnostic score of 1.72 (of 10). The key signals include:

• Williams %R Overbought: Score of 1 (very weak) — historically associated with average 2.86% losses.
• Long Upper Shadow: Score of 1 (very weak) — suggests indecision and bearish pressure.
• Long Lower Shadow: Score of 3.17 (moderately neutral) — indicates some buying pressure but limited strength.

Recent chart patterns include multiple appearances of Long Upper Shadows in late December 2025, with a Long Lower Shadow on December 18 and combined signals on the 22nd. These patterns reinforce the bearish momentum and suggest the stock may be struggling to hold key support levels. The overall trend is clearly bearish, with no bullish indicators in the last five days.

Conclusion

Cango appears to be in a difficult technical position with no bullish signals and a bearish fund-flow environment. While institutional money is showing some interest, the fundamentals and analyst consensus do not strongly support a turnaround. Investors are advised to avoid or closely monitor CANG.N until the technical indicators stabilize and the market sentiment shows more alignment with price performance.