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BYD share: The search for the point at which everything tips over … – Chart analysis

The question of where the China stock market hype is taking the BYD share has dominated the paper for the past few days and weeks. A steep upward movement pushed the Chinese company’s share price up to 164 Hong Kong dollars, the day’s high on Thursday and Friday. For comparison: In mid-March during the corona price slump on the stock exchanges, BYD shares had fallen to 33.50 Hong Kong dollars, the first half of 2020 ended just below the 60 dollar mark and BYD’s share price stood at 121 at the end of September. 40 Hong Kong dollars. The 200-day line is Hong Kong $ 75.70, which is less than half the closing price for BYD shares on the Hong Kong Stock Exchange on Friday.

These figures show that there could be some short-term exaggeration in the course – and thus possible correction risks. So far, the BYD share has been able to evade the risk again and again. The fact that the all-time high of 164 Hong Kong dollars was only reached on Thursday and Friday clearly demonstrates the currently intact upward trend. Despite all the risks, it must not be forgotten that the Chinese stock is dealing with intact bullish trends at all time levels.

Nevertheless, things could get tight for the BYD share now. Movements like the current one live on the momentum. If this gives way, it becomes dangerous. If the paper does not succeed in overcoming the 164 mark in the short term, this “tipping point” could be reached, for which many “shorties” in BYD shares have been waiting for a long time. A stable jump above 164 Hong Kong dollars, however, confirms the upward trend again.

If the trend changes, a strong correction movement is possible after the significant price gain of the last few months. Just a slide below Friday’s low of HK $ 152.40 could trigger more significant profit taking. There is further trading support for the BYD share between 143.50 Hong Kong dollars and 146.60 / 147.00 Hong Kong dollars. Additional sell signals on these brands could then accelerate the downward movement.

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