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

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account