Didi tests downward trend line - Analysis - 31-05-2022

Didi's stock rose 8.65% in the last session, or 16 cents, settling thereafter at 2.01, with trading volumes surpassing 56.1 million shares, above 10-day averages of 52.2 million.

China FAW recently contacted DIDI CEO about the prospects of becoming a major shareholder, and support Didi in fixing data security issues, paving the way for listing in Hong Kong. 

Technically, the stock is trying to recoup some past losses, amid positive signals from the RSI after reaching overbought levels, retesting the resistance of the main downward short-term trend line, with negative pressure from the 50-day SMA.

Therefore we expect the stock to return lower, targeting the support of 0.90, provided it settles back below 1.75. 

Expected trend for today: Bearish