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BYD share: escape the bears one more time – but the dangers remain! – Chart analysis

After a typhoon paralyzed trading on the Hong Kong stock exchange yesterday, trading has started again today – and BYD shares can continue their bullish movement of recent months. Chart technical signs of an imminent top formation are wiped off the table at first glance with the jump to a new house top at 134.30 Hong Kong dollars. At least BYD’s share price can noticeably surpass the previous top range at 127.80 / 129.80 Hong Kong dollars. Here the upward movement of the Chinese auto stock had lost momentum in the past few days. But the further course of trading shows that the BYD share cannot keep the price gain in part. The company’s share price currently stands at $ 131.60, up more than 2 percent.

The BYD share will thus bounce downwards in the region around the upper Bollinger band. The previously generated chart buy signal is not negated. On the contrary: from an initial reaction low of 129.30 Hong Kong dollars, the share price of the Chinese group has moved up again and is currently noticeably higher. The development can be viewed as a bullish, completed pullback – a development which, from a technical chart point of view, would confirm the buy signal for the BYD share.

So currently the upward trend in the title remains intact at all time levels and is confirmed today. After the strong price gains since the corona crash low of 3350 Hong Kong dollars in March of this year, there are still risks of greater consolidation. With the jump above the previous top range at 127.80 / 129.80 Hong Kong dollars, this becomes the first technical support level for BYD’s share price. A slide below this could trigger profit-taking. Stronger technical support below that can still be found between 117 Hong Kong dollars and the daily lows from Monday to Wednesday of last week, which are in the zone at 118.00 / 119.50 Hong Kong dollars. In this region at the latest, sell signals for the BYD share would be dangerous.

On the upside, however, the rising upper Bollinger Band could continue to be an orientation mark for the automotive share.

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