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BYD: Bullish Bias Remains

China's domestic vehicle sales volume jumped 43.5% on month to 2.07 million vehicles in April, the first positive monthly sales growth over the past 21 months, according to the China Association of Automobile Manufacturers. Let's take a look on a leading Chinese vehicle manufacturer - BYD (1211).

From a technical point of view, although stock posted a pullback from the high of April 29 at $49.50 on a daily chart, it is still supported by a rising trend line drawn from March low. The process of higher tops and higher bottoms remains intact, helping to maintain the bullish outlook. Besides, the golden cross between 20-day and 50-day moving averages has been identified.

In this case, the bullish readers could consider to set the support level at $42.60 (around the 50-day moving average). The resistance levels are located at $49.50 (the high of April 29) and $53.60 (the close price of February 20).

On the other hand, if the prices break below $42.60, the stock would seek the next support level at $39.50 (overlapping support base).

Source: GAIN Capital, Trading view

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