The Evergrande is the second-largest real estate company in China. The Chinese Evergrande did its IPO in November 2009. The share price ranged between $1.93 and $8.45 between the years 2009 and 2017 until a breakout occurred in May 2017 when the price broke the previous resistance level of $8.45. Evergrande had the best year in 2017 as the price at the beginning of the year was at $5.01 which later closed at $26.96 at the end of the year, after the price reached an all-time high at $32.50 in the same year. Since the all-time high was reached at $32.50, the chart has been showing lower highs and lower lows.
In the early months of the global lockdown in 2020, Evergrande’s share price dropped from $21 to $10 before recovery began which later took the price to $28.01 in 2020. Since this height was reached, the bears have been more active as the price of Evergrande closed at $1.59 in 2021, which is lower than the IPO price at $4.01. Since the price showed that the price has been overbought in 2017, the price since then has fallen from the top. The chart has shown that in the last 5 months of 2021, the price has been oversold with 5 dojis.
Since the second-largest real estate in China has been having issues with debt in 2021, there were huge selloffs. RSI is currently showing that the price is oversold and the candlesticks are in the lower region of the Bollinger bands. If Evergrande gets a bailout, the price could reach $20 in the next few months.
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