Meituan Dianping Jumped on Better Than Expected 1Q Result

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By :  ,  Financial Analyst

Meituan Dianping (3690.HK) Jumped on Better Than Expected 1Q Result

Meituan Dianping (3690), a group buying website for food delivery services and retail services, announced that 1Q net loss widened to 1.58 billion yuan, beating the expectation of the net loss of 1.66 billion yuan, from 1.43 billion yuan in the prior-year period and operating loss increased to 1.72 billion yuan from 1.30 billion yuan on revenue of 16.75 billion yuan, down 12.6% on year.

From a technical point of view, the stock reached a new record high on the daily chart, suggesting a strong uptrend for the prices. The prices stand above the previous high at HK$116.00 and also are supported by a rising 20-day moving average.However, the RSI is above its overbought level at 70. Bullish readers should wait for a consolidation first.

The key support level would be located at HK$116 (the high of January and the previous low on May 25), while the resistance levels would be located at HK$144 (around 161.8% retracement level of previous correction) and HK$162 (around 200% retracement level).

Sources: GAIN Capital, TradingView
Related tags: Equities Tech Stocks China

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