BYD: Bullish Bias Remains

China's domestic vehicle sales volume jumped 43.5% on month....

Stocks (3)

China's domestic vehicle sales volume jumped 43.5% on month to 2.07 million vehicles in April, the first positive monthly sales growth over the past 21 months, according to the China Association of Automobile Manufacturers. Let's take a look on a leading Chinese vehicle manufacturer - BYD (1211).

From a technical point of view, although stock posted a pullback from the high of April 29 at $49.50 on a daily chart, it is still supported by a rising trend line drawn from March low. The process of higher tops and higher bottoms remains intact, helping to maintain the bullish outlook. Besides, the golden cross between 20-day and 50-day moving averages has been identified.

In this case, the bullish readers could consider to set the support level at $42.60 (around the 50-day moving average). The resistance levels are located at $49.50 (the high of April 29) and $53.60 (the close price of February 20).

On the other hand, if the prices break below $42.60, the stock would seek the next support level at $39.50 (overlapping support base).


Source: GAIN Capital, Trading view

More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.