The BMW share price has encountered resistance at the September low, reflecting volatility in the automotive sector. After the release of the company's third-quarter figures on November 6, the stock experienced a sharp decline, dropping by 6.6% in a single day. The share price hit a four-year low of EUR 65.26 just a week later.
Analysts suggest that for a more substantial recovery to take place, the stock must first surpass the EUR 70 mark and breach the July downtrend line. Closing the gap created on November 6 and surpassing the GD50 at EUR 73.51 would also be significant. However, there are potential resistance points at the August low of EUR 77.98 and the GD100 at EUR 78.18.
In the short term, if the stock falls below the September low of EUR 68.58, attention will likely turn to the 2022 low of EUR 67.58 and the short-term uptrend line established in November. Further declines could revisit the current annual low of EUR 65.26, and if the shares fail to rebound, the downward trend could extend to the 2016 low of EUR 63.38 or even the EUR 60 mark.
The automotive industry is facing challenges such as supply chain disruptions, rising material costs, and shifting consumer preferences towards electric vehicles. BMW is actively expanding its electric mobility offerings but faces challenges in terms of investment in technology and infrastructure.
BMW's performance will be closely monitored by investors and analysts as the automotive sector's recovery depends on various factors. The company's strategic decisions in the coming months will be crucial in determining its trajectory in a competitive landscape.