DIDI - 2 Possible ways for Didi 🤔-As all the Chinese stocks are going through rough times with the Chinese government and their regulations, Didi is no exception.
-With the given uncertainty in the Asian market, we expect two outcomes from the current formation.
-For Didi to get into a bullish movement, it needs to keep up with the current support line and not break below it. If we manage to stay above the support line, Didi probably will break through the resistance line, if not, then like we mentioned on the chart, a bigger drop will be expected.
-Let's watch the chart and see what opportunities will be given to us!
Didi
DIDI Global ideaAt the time of DIDI`s IPO i was tempted to enter this stock because i was listing to Jim Cramer`s blessing: 'I would try to get as many shares as you can'. i hope he didn`t. and i haven`t entered either because i considered the valuation too high for a company that last year had negative earnings, -10.84Bil.
And in comparison i was listing to analysts saying that UBER will never be a profitable company. So why would i invest in the Chinese copy of a business that didn't find the path to profitability for so many years?!
The funny thing is that after going down 55% from the IPO day, Jim Cramer reevaluated the Chinese stocks: "You can't own Chinese stocks"! :)
I`m looking forward to read your opinion on Chinese stocks right now.
Didi Suspended from App Stores in China Over Data ProtectionOn July 4, the Cyberspace Administration of China (CAC) ordered app stores to stop offering the Didi app.
China's cyberspace regulator banned Didi from app stores on July 4, owing to the illegal collection of users' personal data. The CAC had requested Didi to rectify the existing problems in strict accordance with the legal requirements, protecting users' information security.
Didi responded that it had implemented the relevant requirements of the national departments, stopped registering new users and removed its app from app stores on July 3, with no effect on the current users, including both passengers and drivers. Meanwhile, the company said it would "improve risk prevention awareness and technical capability, protect users' rights and data security, and provide safe and convenient services."
On June 30, Didi listed its shares on the New York Stock Exchange at an offering price of USD 14 apiece. The price rose by more than 28%, with a market value of about USD 67.8 billion. The volatility continued on July 1 when the company's share price grew nearly 16% to USD 16.4 per share, increasing its market cap to USD 78.6 billion.
On July 2, the firm's share price plummeted over 10% owing to the news, with its market cap losing in excess of USD 3 billion within one trading day.
Short Activity Report - YellowWe continue to move sideways inside the squeeze between 37 and 80. We see healthy short activity with the bulls still in control, thorugh bear territory. The shorts started at the $50 area and that will be the resistance to break clean over 55, which is just the 10% window above the last short. We are still bullish with the shorts feeding the squeeze. Rememeber the last shorts before that were the 60 area and those areas left behind will give us the accelaration signs we need to look for.
Green - No shorts , Happy sailing
Yellow - Shorts in sight, bulls in control
Red - MAaive short activity or shorts in control, inminent breakdown.
Good luck, just a thought
Threads in the needle to go shortThis is my first trading idea published here, mainly because all my capital is allocated and I don't have more to trade on this one, so I'll post it to start building some reputation. But don't follow me because I might be lost too.
Here we go:
ADX shows a short trend starting on the daily, still weak, but we can consider it to start the trade. On the weekly, the trend is lost, which might be influenced by the daily trend.
Bollinger bands are wide opens, indicating it's time to go in. Check.
Now the most important and special part of the idea: Didi index shows an "agulhada" which means the three threads going at the same time into a needle hole. Beautiful.
That's all we need to know to go short on KDR, IF it goes below 2.04 , it will try to get the 1.94 , then 1.84 and 1.75 . 1.64 is the performance bonus.
If it goes up we need to hold our enthusiasm, stay out and observe to see how it behaves.
Time will tell.
Don't worry about the other two indicators, I was taught to use them to get out of the trades.
