Meituan latest news: oversold technicals and rangebound outlook

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Meituan up 2.65% today on rebound

Highlights

Meituan closed at $96.95, gaining 2.65% but remaining below its MA-20 ($102.29), MA-50 ($107.37), and MA-200 ($135.21), signaling persistent downward momentum.
Southbound flows from Mainland China totaled HKD1.1 billion, HKD414.1 million, and HKD394 million over recent sessions, indicating strong investor demand despite market pressure.
With nearly 70% of new food delivery orders under RMB15 and subsidy-driven beverage sales, Meituan faces tightening margin pressure and challenging profitability.

Investor caution increases as upward moves meet skepticism

Recent southbound trading data indicate robust investor interest in Meituan shares, with net inflows of HKD1.1 billion, HKD414.1 million, and HKD394 million from Mainland China across several sessions. Meanwhile, company data show that nearly 70% of new food delivery orders this year are priced below RMB15, highlighting ongoing price competition and margin pressure. Growth in delivery volumes is also being driven by beverage sales subsidies, further impacting profitability.

Oversold conditions persist as resistance holds and momentum stalls

The price remains under pressure below all key moving averages — MA-20, MA-50, and MA-200 — while the Kijun at $101.90 acts as the nearest resistance. Support appears increasingly fragile, with prices holding well beneath all key metrics. Technical indicators are mixed: MACD and ADX suggest neutral momentum, while oscillators such as RSI ($32.04), Stoch RSI, and CCI are all in oversold or deeply oversold territory, pointing to exhaustion from recent selling. BBP supports ongoing seller dominance, with intraday stabilization attempts being only partly confirmed by trends.

Downside risk prevails amid constrained rebound prospects

For the upcoming week, price action is projected within a $92.70 to $101.80 range, centering near $97.25. Technical signals indicate a less than 20% chance of a sustained rebound, with downside risk more likely given negative readings across major moving averages and oscillators. The base case is continued range trading under resistance near $101.90. Only a sustained close above this level would suggest a recovery, while a break below $92.70 could expose deeper lows.

Anton Kharitonov, expert at Traders Union, notes that despite recent buying interest from Mainland investors, Meituan remains under persistent technical pressure, trading below all key moving averages and with oversold momentum signals. He believes ongoing price competition and subsidy-driven growth continue to weigh on fundamentals and sentiment, keeping the risk profile elevated. Kharitonov sees little evidence for a sustained recovery unless major resistance at $101.90 is decisively reclaimed. "Base case remains range-bound trading under $101.90 — until that level breaks, downside risk dominates my outlook."

Source of Data: 3690 Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.