BYD Stock Shows Signs of Potential Turnaround After Months of Decline
BYD stock has been on a downward trajectory since May 2023, with a significant decline from its record high. However, recent indicators suggest a potential turnaround in the stock market.
The stock reached a low of 102.80 HKD in mid-September, marking a 35% drop from its peak. Despite two recovery attempts in mid-September and early October, both were unsuccessful. The second attempt was halted by the 50-day moving average. However, the stock has found support in the 100/110 HKD range, slowing its descent in the stock market.
Bullish divergences in the MACD and RSI hint at a possible upward movement in the stock market. The Elder-Ray-Index and momentum indicator suggest a balanced market power between bulls and bears, indicating a potential bottom formation. To confirm a sustainable trend reversal in the stock market, the stock needs to surpass both the SMA50 and SMA200 levels, currently around 115.90 and 115.60 HKD respectively. Failure to do so may result in further downward movement in the stock market.
BYD stock's recent performance suggests a potential bottom formation in the stock market, with indicators pointing towards a possible upward trend. However, a sustainable trend reversal in the stock market requires the stock to break through key moving average levels. Investors should closely monitor the stock's performance in the coming weeks in the stock market.
