Photo by niphon



Video Lenght 00:02:38
 

• Instrument: BYD Company Limited (1211.HK)
• Average Pattern Move: +6.20%
• Timeframe: March 26 – April 17
• Winning Percentage: 70%

  (Click on image to enlarge)

EV Market Expansion & Tariff Pressures

BYD is capitalizing on the global shift to electric vehicles, making strategic moves into key emerging markets such as Thailand, South Africa, and Brazil. While Western economies impose tariffs on Chinese EV imports, emerging markets are embracing BYD’s cost-effective, technologically advanced vehicles. With a focus on affordability and innovation, BYD’s sales continue to climb, reinforcing its position as a dominant player in the industry.

Notably, China’s auto exports rose nearly 20% to 4.9 million units in 2024 according to the China Association of Automobile Manufacturers, with BYD leading the charge. The company’s recent unveiling of a five-minute EV battery charging system further cements its technological edge, making its vehicles even more attractive to cost-conscious consumers in developing markets.

Seasonal Tailwinds & Investor Sentiment

The seasonal strength seen in BYD’s stock price coincides with increased production output and expansion initiatives. Investors historically anticipate stronger demand, driving bullish sentiment into April. Additionally, as geopolitical uncertainties unfold, China’s automakers may find further opportunities in markets where US and European automakers struggle to compete on cost and supply chain efficiency.

This seasonality could be further bolstered by expectations of a recovery in Chinese consumer demand following recent economic stimulus measures. With global inflation cooling and central banks considering rate cuts, affordability concerns surrounding EV adoption may ease, providing a tailwind for BYD and the broader EV sector.

Technical Perspective

From a technical standpoint there is a monthly support level in the 340 region and any pullbacks to that region may invite dip buyers with stops sitting under the 300 level.
 

(Click on image to enlarge)

More By This Author:

UK Inflation Set To Drive GBP Strength Once More?
Do Car Races Influence The Share Prices Of Car Manufacturers?
Will The Fed Meeting Provide A Lifeline For USD/JPY?