BYD Stock: Finally! – Financial trends

BYD took another step forward on Wednesday: this is its third successful trading day in a row. This is positive – at least in the eyes of analysts doing trend analysis. It rose by 0.6%. Except for a small temporary move of 0.34 euro, the share is close to the 25 euro mark. That is a good sign.

Trend analysts, but especially chart analysts, see this as a good sign. In this way, the chance to initiate a change of direction appears. But the stock markets are currently not ready to give BYD too much credit. Prices are still down about 1% this year. Now there was less serious news.

BYD: That hurts!

BYD not only builds electric cars, but also batteries. This fact has come to light recently. Now the Chinese company has suffered a shocking defeat at the hands of its competitor LG Energy Solution. Because LG has replaced BYD as the world’s second largest battery manufacturer.

This is not currently visible. Relatively weak performance, which the chart image still records, can be explained by another situation: stock markets still lack the necessary confidence in Chinese stocks. China and the United States are fighting over trade barriers.

In particular, BYD, for example, must expect that the customs situation in the United States will worsen. The current bearishness is clearly visible in the chart picture, which at least no longer showed any significant possibility of further breakouts. But now, as mentioned, it is approaching the mark of 25 euros. This is considered a good sign.

BYD stock chart

However, stock markets should fear that the situation will remain somewhat weak, driven by the conflict with the United States. Or are analysts right to expect higher prices?