Chinese EV Giant BYD Poses Strong Competition to Tesla, Achieves 10x Growth in 5 Years

If BYD stock undergoes a correction, it finds immediate horizontal support between HK$324.6 and HK$333. Should this level fail to hold, the next significant Fibonacci support levels are at HK$251 and HK$144. Despite this, the indicators present a bullish outlook on the weekly chart. Both the MACD lines and EMAs remain bullishly crossed, and the histogram continues to exhibit a bullish trend, reinforcing the mid-term bullish stance. While the RSI is approaching overbought regions, signaling caution, it has already invalidated the possibility of a bearish divergence on the weekly chart.

On the daily chart, however, the RSI is forming a bearish divergence, with the MACD histogram trending bearishly. Despite this, both the EMAs and MACD lines remain bullishly crossed, confirming the trend as bullish in the short to medium term. If BYD enters a corrective phase, the next support zone suggests a potential downward move of approximately 12%.

The 4H chart mirrors this outlook, with the RSI showing a bearish divergence and the MACD histogram ticking predominantly lower. However, both the MACD lines and EMAs remain bullishly crossed, maintaining the bullish trend even in the short term. Despite this, the emerging warning signs suggest exercising caution moving forward.