Meituan: Potential or fake rebound?Published On: 26 Mar 2021, 6:00 PM | Wong Kok Onn, Dealer
- Meituan has been on an uptrend since IPO in Sep 2018 and hit the historical high of HKD$460 last month and proceeded to plunge downwards forming a downtrend.
- Currently, price has approached the support level as shown in the chart and the Morning Star formation can be seen. This serves as an indication of a potential bullish reversal and may continue to challenge the historical high.
- A cross of the MACD line above the signal line will also suggest a potential bullish reversal.
- However, if price continues downward and closes below the support level, this can signal a continuation of the downtrend.
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