Given the results are unaudited, what risks or uncertainties should we consider when assessing the stock's short‑term momentum?

Risks & uncertainties tied to the unaudited nature of the Q2 2025 release

Because the numbers have not yet been audited, investors must assume that the figures could change materially once the audit is completed. The most common sources of variance are (1) revenue or commodity‑price adjustments that arise from the final reconciliation of mining volumes, (2) re‑classification of operating expenses (e.g., capital vs. SG&A) that can swing EBITDA and cash‑flow metrics, and (3) potential accounting restatements related to reserve valuations or deferred tax assets. Any downward revision would likely trigger a sharp sell‑off, especially given Cango’s relatively thin float and the high sentiment score (10) that already priced in strong near‑term upside.

Trading implications

From a technical standpoint, CANG is trading near its 20‑day EMA with the price perched just above a short‑term resistance band around $12.50. The risk‑on bias is supported by a bullish MACD crossover and rising volume on the earnings release, but the lack of audit confirmation creates a “risk‑on‑risk‑off” catalyst. A prudent short‑term strategy is to treat the stock as a “high‑probability, low‑confidence” play: consider entering a modest long position (e.g., 5‑10 % of a portfolio) with a tight stop‑loss just below the recent swing low ($11.80) and a take‑profit target near the next resistance at $13.20. Conversely, if the audit later flags a material variance—especially a downgrade in mining output or a restated net loss—rapid downside could be expected, so keeping an option to flip to a short or to exit the long on any negative news flow is advisable. Monitoring the SEC filing deadline (typically within 45 days of the quarter end) will provide the next decisive event for positioning.