Didi Global Inc. DIDI shares were trading higher Thursday after shares of several Chinese stocks made gains after the Chinese government vowed to focus on consumption recovery and reduce some income tax rates. The stock was trending on social media sites throughout the day.

Didi Global was up 5.47% at $5.21 Thursday afternoon.

Didi Global Daily Chart Analysis

• Shares have recently fallen below support in what traders call a sideways channel. The $10 level was holding as resistance while the $7 level was holding as support before the crack of support. Now, as the stock trades below the $7 it may hold as an area of resistance.
• The stock trades below the 50-day moving average (green), indicating the stock is likely facing a period of bearish sentiment. The 50-day moving average may hold as an area of resistance in the future for the stock.
• The Relative Strength Index (RSI) has been falling lower the past couple of months and now sits at 31. This shows the stock is near the oversold region and is seeing many more sellers than it is buyers.

What’s Next For Didi Global?

Didi Global falling below support is a bearish sign and shows the stock was unable to find buyers where it once could.

 If the $7 level holds as an area of resistance, the stock could see a strong bearish push. This is what bears are looking for in the future. Bulls are looking to see the stock recover the $7 level and form higher lows, pushing toward the $10 resistance level.