Technical Pulse: BYD Co Ltd January 13, 2022 414

BYD Co Ltd (HKEX: 1211) The upside is set to make a comeback after recent technicals indicated positive signals:   

 

  1. The price is seen rebounding at the 200.00% extension level at HK$238.26 of the previous descending triangle from October-November 2021.
  2. The morning star candle formation is seen rebounding from the key support zone at the 200.00% extension level mentioned above.
  3. The falling wedge formation is indicative of a bullish upside reversal.
  4. The RSI is seen forming a bullish divergence.
  5. The DM+ is seen rebounding from the bottom and DM- is seen crossing below the ADX potentially. This means that the bearish trend is likely coming to an end.

 

 

*Expected timeline of the trade is 25 weeks from the date of report issuance.

CHART LEGEND

 

Ichimoku Kinko Hyo

Red dotted line = 26 periods Kijun-Sen

Blue dotted line = 9 Periods Tenkan-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line

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