BYD Company Limited, located in Shenzhen, is a top manufacturer of plug-in electric vehicles, having outpaced Tesla by 2022. In 2023, BYD sold over 3 million new energy vehicles, thanks in part to popular models like the Dolphin. Recently, the stock reached a new all-time high, showing signs of further growth. The monthly Elliott Wave chart for BYD indicates that Waves (I) and (II) are complete, suggesting a breakout for Wave (III). The stock initially rose to 333, then pulled back to 161.70, and eventually increased, with Wave I peaking at 426.60 and Wave II retreating to 309.80, followed by new highs above 161.70. The daily Elliott Wave chart highlights the current rally in Wave (III), featuring smaller nested waves. As the stock advanced, each pullback led to further gains, with Wave I of (III) peaking at 426.60 and a pullback to 309.80. If the price stays above 161.70, more buyers are likely to step in, indicating potential for further increases. Trading in the Foreign Exchange market involves risks. It’s important to think carefully about your investment goals and risk tolerance. Losses can happen, and the performance of BYD’s stock is not guaranteed. BYD’s recent chart activity shows a strong breakout pattern that follows typical Elliott Wave principles, especially the broader five-wave structure often seen in strong upward markets. The earlier wave formations closed decisively, signaling renewed buying interest as the price continues to rise. When Wave (III) is confirmed, it usually shows a more vigorous rally compared to earlier phases, which seems to be occurring now. Examining the daily chart, the nested structure in Wave (III) is clear. These formations often indicate healthy, continued upward movement: each smaller wave rises after a period of stability, creating a step-like rise. The pullback to 309.80 was minor compared to the earlier advance to 426.60, showing that short-term selling did not weaken the overall strength. As long as the structure holds and prices stay above key levels, the chances of progressing further remain high. For those managing short-term positions, it’s wise to analyze the pullbacks within these waves. Entering trades after consolidation phases—rather than during extended rallies—usually provides better risk-reward scenarios. With the stock well above the previous support level of 161.70, this level now serves as a secondary reference point rather than a major concern. Li’s firm has solidly backed this technical perspective with consistent delivery numbers and brand popularity, reinforcing the wave patterns seen on the chart. However, this doesn’t eliminate risk, as volatility can still lead to temporary price changes, especially if market sentiment shifts. Looking ahead, a smart strategy is to trade smaller amounts within the larger trend. The wave count offers a helpful context—it acts like a roadmap, not a guarantee. As long as upward momentum continues, minor corrections should be viewed as opportunities rather than reasons to sell. Spread out your exposure sensibly and reevaluate your position sizes if prices begin to hover near previous support levels. Given the uptrend’s ongoing strength and the alignment of different timeframe structures, trades favoring upward movement remain reasonable. This is especially true with option spreads or staggered entries. Any price movements back toward breakout zones—like just above 309—could serve as temporary bases for accumulating or reducing downside risks. It’s also worth noting that options implied volatility hasn’t surged much despite the recent highs. This indicates that the market isn’t yet accounting for significant directional risks—either a correction or excessive optimism. This keeps theta decay manageable for long positions held as part of trend-following strategies. Being aware of these dynamics will be beneficial as the market structure evolves over the coming weeks.

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