DiDi Stock Falls Just Days After IPO: Technical Levels To Watch

DiDi Global Inc. DIDI shares were trading lower Friday after China announced a cybersecurity review days after the stock went public.

China’s internet regulator said it’s investigating the company’s cybersecurity risks. DiDi Global is a Chinese ride-sharing company similar to Uber Technologies Inc. UBER and Lyft Inc. LYFT.

DiDi Global was down 7.1% at $15.24 ahead of the close Friday. 

DiDi Global 15-Minute Chart Analysis

Shares are trading in a sideways channel and look to have recently rejected a resistance level. 

The stock does not have a 50- or 200-day moving average as of yet, making it harder to gauge sentiment in the stock.

The Relative Strength Index (RSI) has been falling recently and approaching the oversold area.

Key DiDi Global Levels To Watch

The $14 mark has held as support so far in DiDi Global’s trading; this level may continue to act as support in the future.

The stock has rejected the $17 level twice, making it a possible area of resistance in the future.

The stock has been falling in recent weeks and the Relative Strength Index (RSI) has almost dropped to the oversold area. The RSI sits at 37 now, and the oversold area begins at 30 and goes all the way down to zero.

What’s Next For DiDi Global?

Bulls would like to see the stock form higher lows and head up toward resistance. If the stock can break above the $17 resistance and have a period of consolidation above the level, then the stock may be ready to see a further push up.

Bearish traders would like to see the stock fall toward the $14 support level. Bears would then like to see the stock consolidate below this level for a potential further bearish push.