Oversold signals for Meituan — price forecast suggests bearish continuation

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Meituan unchanged at 0.00% today

Highlights

Meituan trades at $96.65, below its MA-20 ($101.86), MA-50 ($106.87), and MA-200 ($134.92), indicating persistent multi-timeframe downside pressure with moderate volatility.
Instashopping platform expansion with Li Ning's nearly 1,000 stores in about 100 cities boosts Meituan's ecosystem integration and retail-driven revenue potential.
Technical indicators show mixed momentum and oversold oscillators, with Meituan expected to remain rangebound between $92.80 and $101.90 next week and less than 20% probability of price increase.

Ecosystem expansion and sector rotation shift sentiment for Meituan

Meituan's Instashopping platform expanded as Li Ning joined the network with nearly 1,000 stores across about 100 Chinese cities, strengthening the company's ecosystem integration and offering potential for higher retail-driven revenues. The catering sector is also undergoing a significant transformation, with a focus on quality dining reshaping Meituan's strategic direction. Additionally, sector rotation in Chinese tech equities may be influencing trading sentiment for the stock.

Oversold signals diverge with mixed momentum beneath resistance

Meituan’s price at $96.65 is trading below the MA-20 at $101.86, MA-50 at $106.87, and MA-200 at $134.92. This configuration signals persistent short-, medium-, and long-term downward pressure with the nearest resistance around the Ichimoku Kijun level at $101.90 and no immediate dynamic support visible below. Momentum signals are mixed: ADX points to an emerging trend while MACD remains neutral. Multiple oscillators flag oversold conditions (RSI at 42.32, Stochastic RSI at 13.22, and CCI at –143.3), suggesting potential exhaustion on the downside, yet BBP and the Awesome Oscillator both confirm sellers continue to dominate intraday action. Price action is neutral on the day with no gap between yesterday’s close and today’s open. The current price sits mid-range between $96.40 and $98.85, with volatility appearing moderate and intraday tone showing sideways consolidation. There is clear divergence as momentum shows stabilization while oscillators suggest potential reversal, but neither is confirmed by intraday price action.

Downside risk dominates as price likely stays rangebound

For the coming week, Meituan is expected to trade in a range of $92.80 to $101.90, with an average price around $97.35. The probability of a price increase is very low (less than 20%), making further decline more likely. Continued sideways trading within this corridor is the baseline scenario. Breaking above the $101.90 resistance could signal recovery, while a drop below $92.80 would open the way for additional downside.

Anton Kharitonov, expert at Traders Union, sees Meituan maintaining sustained downward pressure across all key moving averages, with oscillators highlighting oversold signals but lacking any decisive reversal confirmation. He notes that recent ecosystem developments, such as Instashopping's expansion and the catering segment’s transformation, have not yet improved price action or investor sentiment. Kharitonov remains skeptical given momentum remains mixed and the probability of price recovery is below 20%. "Until Meituan breaks above the $101.90 resistance, I see no reason to adjust a defensive stance — sideways or lower trading remains the base case for now."

Previously it was noted that Meituan was experiencing sustained downward pressure with prices positioned below all key moving averages and neutral momentum indicated by MACD and ADX. The article also highlighted, via price action is projected within a, that downside risk prevails amid constrained rebound prospects for the coming week.

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.