BYD (01211) at HKD 103.1, holding above HKD 106.7 may continue to rebound.

BYD's current price is HKD 103.1. The short-term rebound momentum has improved, but the price remains below the 250-day moving average of HKD 110.163. To confirm a further strengthening in the short term, it needs to first rise above HKD 110.163. At this stage, the risk-reward ratio is neutral as the trend has improved, but the range between HKD 110.163 and HKD 112.948 remains the key resistance area. A more prudent strategy would be to hold above HKD 106.715 for a continued rebound, with a break above HKD 110.163 confirming renewed strength; if unable to break through, one should remain cautious about consolidation or pullback at higher levels.

Market sentiment is generally positive, but not entirely unanimous. The bullish side believes BYD has long-term logic in batteries, chips, sales, and new energy vehicles, while also anticipating short-term buying interest and short-squeeze optimism. On the bearish side, concerns mainly revolve around profit-taking after a rise and selling on positive news once expectations are met at higher levels.

The focus of comments leans significantly towards optimism, with many investors expressing confidence in BYD due to its battery business, self-developed chips, Beijing Auto Show performance, sales reports, and the prospects for new energy vehicles, believing that the stock price could continue to rise, potentially triggering a short squeeze. However, some comments express concerns about profit-taking after a large rise, post-earnings selling, currency impacts on profits, and the possibility of a short-term decline.

Common questions revolve around three points: First, whether it's worth entering at the current price; second, whether the share price can break through HKD 110 and sustain the upward trend; third, whether there will be a quick pullback after a significant rise. From a technical standpoint, HKD 106.715 acts as the short-term pivot point. As long as it holds steady, the rebound structure can remain intact; breaking above HKD 110.163 provides conditions to test HKD 112.948 next. Conversely, if it falls below HKD 106.715, it indicates short-term weakness, requiring attention to downside risks toward HKD 100.482.

Key focus for BYD (01211): Hold above 106.715 and break through 110.163, short-term target at 112.948; if it falls below 106.715, watch for a retest of 100.482.

Strategy One | Rebound after holding above 106.715

25678 | Strike price 106.98 | Actual leverage 5.3x | Close to current price, suitable for capturing early rebounds after holding support

25528 | Strike price 106.98 | Actual leverage 5.4x | Higher leverage, ideal for amplifying returns during an accelerating rebound

25599 | Strike price 106.98 | Actual leverage 5.4x | Balanced choice, suitable for phased deployment in volatile conditions

$UB-BYD @EC2608A.C (25678.HK)$$HS-BYD @EC2608A.C (25528.HK)$$CT-BYD @EC2608A.C (25599.HK)$

Strategy Two | Chasing the rebound after breaking through 110.163

24647 | Strike price 128.98 | Actual leverage 5.7x | Out-of-the-money position, suitable for capturing extended upside after a breakout

24384 | Strike price 128.98 | Actual leverage 5.8x | Higher leverage, suitable for following trends post-breakout

21830 | Strike price 138.89 | Actual leverage 6.6x | Further out-of-the-money, suitable for expecting larger rebound potential

$UB-BYD @EC2610A.C (24647.HK)$$HS-BYD @EC2610A.C (24384.HK)$$UB-BYD @EC2609A.C (21830.HK)$

Strategy Three | Weakening deployment after falling below 106.715

17485 | Strike Price 100.88 | Actual Leverage 10.1x | Close to the weakening zone, suitable for capturing downward momentum after breaking through support

28460 | Strike Price 99.85 | Actual Leverage 4.6x | Relatively stable leverage, suitable for observing a retest of levels around 100

22314 | Strike Price 81.83 | Actual Leverage 8.4x | Higher leverage, suitable for aggressive positioning during an accelerated decline

$BI-BYD @EP2606A.P (17485.HK)$$UB-BYD @EP2610A.P (28460.HK)$$UB-BYD @EP2608A.P (22314.HK)$

Reminder: This article does not constitute any investment advice.

This article is for reference only and does not constitute any investment advice. Market data, opinions, and analyses contained herein may change at any time without prior notice. We are not responsible for any losses or damages caused by reliance on the information in this article. Technical analysis only indicates whether certain technical conditions are met and should be used alongside other data for a comprehensive assessment of asset performance; trading decisions should not be made solely based on this article. Note that past performance is not indicative of future results. Follow Jenny’s HK warrants for more professional insights. $Hang Seng Index (800000.HK)$$Hang Seng TECH Index (800700.HK)$$Hang Seng China Enterprises Index (800100.HK)$

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