Friday trading saw BYD shares on the Hong Kong Stock Exchange a serious attempt to break out of the recent consolidation move higher. This also succeeded in phases: With a daily high at 189.40 Hong Kong dollars, the BYD share was able to overcome an important short-term hurdle at 185.70 / 186.60 Hong Kong dollars, but was unable to confirm this breakout based on the closing price. At 185.00 Hong Kong dollars, the weekend was slightly below this zone.
So that went wrong, but that doesn’t have to be a big break for BYD shares. At the moment, both scenarios are still possible – on the one hand the pullback to the eruption zone, on the other hand a false eruption.
In the first of the two scenarios, BYD’s share price would have to step on the gas on Monday and catapult automotive shares towards the technical chart resistance levels between 189.40 / 189.90 Hong Kong dollars and 193 Hong Kong dollars – and in the short term beyond. If this succeeds, the intermediate hurdles around 197.20 / 199.50 Hong Kong dollars and at 202.80 / 204.40 Hong Kong dollars could come into view again. Directly above it is the well-known all-time high of the BYD share at 210/212 Hong Kong dollars, which is formed from the two striking tops from November of this year.
In the bearish scenario, the pressure on the latest stabilization levels for BYD’s share price could increase massively. The fact remains: the China title finds support in addition to the area at 169.00 / 171.50 Hong Kong dollars, especially at the directly below support levels around 164/168 Hong Kong dollars with the core area at 165.90 / 168.30 Hong Kong dollars.