BYD Stock: Mixed Signals Point to Potential Recovery
BYD stock has experienced a turbulent year, with recent challenges and signs of recovery. The Elder-Ray Index and Momentum Indicator suggest a balanced stock market, hinting at a potential bottom. The stock's outlook is mixed, with both bearish and bullish signals emerging.
BYD, a dominant player in Chinese EV sales with over 54% market share, has faced recent setbacks. Sales declined nearly 6% in September 2025, and full-year sales targets were revised downwards by 16% due to intense price competition. Despite these challenges, the company's stock price has shown short-term volatility with some upward movement in early October 2025, reflecting cautious investor optimism.
The stock's journey has been tumultuous since May 2023, initially rising to 159.30 HKD before declining to a low of 102.80 HKD in mid-September, a 35% drop from its record high. Two recovery attempts in mid-September and early October failed at key moving averages, indicating resistance. A key support level lies in the 100/110 HKD range.
Technical indicators provide mixed signals. The 50-day moving average (SMA50) recently crossed below the 200-day moving average (SMA200), a bearish signal known as a 'death cross'. However, bullish divergences in the MACD and RSI suggest a potential upward movement for BYD stock. Recent price increases, such as the +3.24% rise on 02.10.2025, and quarterly financial improvements, like the 14% revenue growth in Q2 2025, also hint at possible positive momentum.
BYD stock's recent performance and technical indicators suggest a mixed outlook. While the company faces challenges and bearish signals, there are also signs of potential recovery and upward momentum. Investors should closely monitor the situation as it evolves.
