BYD Breaks 4-Year Range: Is This the Start of a Bigger Rally?

Technical Analysis of BYD Company Limited $BYD COMPANY(01211)$ (HKEX: 1211)

1. Breakout from a 4-Year Range

BYD traded within a defined range for four years, between ~165 HKD support and ~332 HKD resistance (marked in pink).
The recent price action shows a strong breakout above this long-term range, signaling a potential shift in market structure.

2. Retracement to Previous Resistance (Now Support)

After breaking above 332 HKD, the price saw a sharp rally but has since pulled back.
This pullback is testing the previous resistance as support, a classic retest scenario where traders assess whether the breakout is sustainable.

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3. Volume Surge & Market Confirmation

A significant increase in volume occurred during the breakout, suggesting strong buyer interest.
The retracement is happening on relatively lower volume, indicating that selling pressure may not be aggressive.

4. Key Price Levels & Potential Scenarios

Support Levels:

332 HKD – Previous resistance, now tested as support. Holding this level could confirm further upside. 165 HKD – The bottom of the multi-year range, a major long-term support.
Resistance Levels:

400-420 HKD Zone – If the breakout is sustained, this zone could act as the next major resistance based on previous price structure.

5. Trading BYD with DLCs

Bullish Strategy: If the price stabilizes above 332 HKD, traders may consider leveraged DLCs to ride the uptrend $ $BYD 5xLongSG251216(VLSW.SI)$ .
Bearish Strategy: If the price fails to hold above 332 HKD, a breakdown could see a sharper decline, making short DLCs an option $BYD 5xShortSG261217(RDSW.SI)$ .

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Disclaimer:

This document is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. This document has been published for general circulation only.

This advertisement has not been reviewed by the Monetary Authority of Singapore. This post is sponsored by Societe Generale, Singapore Branch. The content of this article does not form part of any offer or invitation to buy or sell any daily leverage certificates (the “DLCs”), and nothing herein should be considered as financial advice or recommendation. The price may rise and fall in value rapidly and holders may lose all of their investment. Any past performance is not indicative of future performance. Investments in DLCs carry significant risks, please see dlc.socgen.com for further information and relevant risks. The DLCs are for specified investment products (SIP) qualified investors only.

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