BYD Company Limited, based in Shenzhen, China, transitioned from a battery manufacturer to the leading global producer of plug-in electric vehicles by 2022, with over 3 million new energy vehicles sold by 2023. The stock recently reached an all-time high, indicating growth within wave III of the Elliott Wave pattern.
The monthly Elliott Wave chart shows that after a rally from an all-time low, the stock progressed through five waves, peaking at 333 and pulling back to 161.7. Currently, it is expected to continue upward while maintaining support at the 161.7 low.
The daily Elliott Wave chart displays further positive movement in wave III after a pullback at 161.7. Anticipation remains for additional highs to complete wave (3), followed by expected corrections within the cycle.
BYD has transformed dramatically over the years, moving far beyond its original focus on batteries. Today, it stands as the world’s top producer of plug-in cars, having surpassed 3 million in cumulative sales by last year. The numbers speak for themselves, and so does the stock price, which climbed to its highest level on record.
A look at the monthly Elliott Wave structure tells us that this isn’t random movement. Instead, it’s part of a longer-term pattern—one that has already completed five waves, reaching a peak of 333 before a pullback brought it down to 161.7. What matters here is that 161.7 has held as a solid base, which suggests the uptrend remains intact. If this support continues to hold, the share price is expected to press higher as it moves through the later stages of wave III.
Shifting to the daily timeframe, we can see movement that reinforces this perspective. There was a necessary correction back to 161.7, but prices have since resumed their upward trajectory within wave III. Further gains are likely in order to finish wave (3), though traders should remain aware that even within a broader rally, temporary declines are normal. Pullbacks will come, corrections will occur, but as long as the structure remains in place, these should be viewed as part of the existing trend rather than a reversal.
For traders involved in derivatives, this setup offers both opportunities and risks. Momentum can provide openings for leveraged trades, but it also means greater swings that require careful positioning. We should keep an eye on short-term moves without losing sight of the bigger structure. While optimism surrounding BYD is understandable, disciplined execution will determine who benefits most from the unfolding waves.
