Didi shakes off negative pressures - Analysis - 07-06-2022

Didi's stock surged in the intraday levels and pierced the downward short-term trend line, while trespassing the resistance of the 50-day SMA, shaking off negative pressures, amid positive signals from the RSI despite reaching overbought levels, marking a hefty profit of 24.32%, or 45 cents, and settling at 2.30, with trading volumes approaching 382 million shares, above 10-day averages of 84.4 million shares. 

The Wall Street Journal reported that Chinese regulators are preparing to bring back the Didi Global app online after an ongoing investigation, which led to the pulling of the app in July 2021 on national security concerns. 

Therefore we expect we expect more gains for the stock, targeting the first resistance of 4.52, provided the support of 1.75 holds on.

Expected trend for today: Bullish