Didi stock fell 4% after employees have been banned from selling their holdings

Didi Global (DIDI.US) stock fell more than 4.0% after the Financial Times announced that the China-based ride-hailing company extended the lock-up expiration indefinitely, preventing current and former employees from selling shares. The 180-day lock-up period post the company’s IPO during which workers were not permitted to sell shares was supposed to end today, but the prohibition has been extended without a new end date, the report said. DIDI is facing a regulatory crackdown in China that has forced the company to delist in the United States and pursue a Hong Kong listing. It seems that only once this process is finished staff may be allowed to sell their shares.

Didi Global (DIDI.US) stock has been in a downward trend in recent months, floating away from IPO price of $16.65. Currently stock is testing a major support zone at $5.40 which coincides with lower limit of the descending channel, and 127.2% external Fibonacci retracement of the last upward wave.  Should a break lower occur, the next target for bears is located around $4.90. Source: xStation5