BYD share price pushed higher again on Monday, jumping past HK$444 in intraday trade as buying momentum carried over from last week.

The stock is now inching closer to its record high, drawing fresh attention from traders looking to ride the electric vehicle rally out of China.

BYD share price pushed higher again on Monday, jumping past HK$444 in intraday trade as buying momentum carried over from last week. The stock is now inching closer to its record high, drawing fresh attention from traders who are looking to ride the electric vehicle rally out of China.

Much of the optimism around BYD right now is tied to growing overseas demand and strong April sales numbers. The company has been scaling up its presence in Asia, Latin America, and parts of Europe, and that’s putting it on the radar of a global audience, especially as Tesla (NASDAQ:) continues to lose steam.

After a stellar run that saw it nearly triple in 2023, the U.S. EV giant has hit a snag. Between trimming prices to stay competitive and missing the mark on recent earnings, it’s looking a bit shakier than usual. Margins have taken a hit, and traders are starting to question whether the EV giant is slipping. You can see it in the way the two charts have parted ways, BYD heading up, Tesla drifting lower.

BYD Share Price Technical Analysis

Optimism in Sight

At these levels, some technical caution might be warranted, especially with momentum indicators overheating. But the strong rally does have technical legs. A glance at the Relative Strength Index (RSI) and Stochastic Oscillator shows that both are approaching overbought territory. This could indicate that the bullish steam is beginning to fizzle out.

However, the Moving Average Convergence Divergence (MACD) indicator is still in bullish territory, suggesting that the current price trend is likely to continue.

If the stock manages to stay above the 23.6% Fibonacci retracement level at around HK$430 and continues to be driven by global demand news, then the next resistance levels to watch could be the 38.2% Fibonacci retracement at HK$448 and the 50% Fibonacci retracement at HK$460 and above.

On the other hand, if the bears manage to push the price below the 23.6% Fibonacci retracement at HK$430, then the next support levels to watch could be the 38.2% Fibonacci retracement at HK$414 and the 50% Fibonacci retracement at HK$401 and below.

At this point in time, the bulls appear to have the upper hand and are looking to push the price to new highs. However, if the bears can manage to regain control of the price, then we could see a reversal of the current trend.

Outlook: Can BYD Maintain Its Lead?

With BYD share price outperforming not just Tesla but also the broader Chinese EV sector, we’re certainly seeing a shift in investor confidence. As global demand and expansion are rolling in, and with plenty of profits, policy, and production scale on its side, perhaps BYD’s story is only beginning, while Tesla’s tale is already facing pressing headwinds in the West.