Zhihu Holding.

Company OverView.

Zhihu Inc. (NYSE: ZH) is an iconic online content community with a mission to empower people to share knowledge, experience, and insights, and to find their own answers. On Zhihu, users explore and enjoy a variety of content from daily lifestyle and entertainment topics to sophisticated knowledge and experience, and to preparation for life events and decisions. Since its inception, Zhihu has worked relentlessly to develop itself into a trustworthy content community. By promoting a culture of sincerity, expertise, and respect developed through years of cultivation, Zhihu fosters a vibrant online community where users contribute and engage while respecting diversity and valuing constructiveness.

Is Zhihu a good pick?

For many investors, the company was the most anticipated IPO of 2021, with very good prospects of being a gateway to the entertainment business in China. Unfortunately, ZE has been greatly affected by all the uncertainty created by the Chinese government's restrictions on most technology companies from that country and, after reaching almost $ 14, the share price today is around $ 5.

In the third quarter it reported very good numbers with a gross profit of 65 million dollars, which compared to the third quarter of 2020 represents an increase of almost 93% and not only the profits were synonymous with good results, the company is also growing exponentially and In the same report, it indicated that it has more than 100 million active users, which is more than 40% more than last year.

Technical Analysis.

From July to December, the share lost 67% of its value. With high volatility between highs and lows of +38% or - 40%, the share price went from $13.9 in July to $4.78 in December.

The RSI indicator has been almost the entire month of December in oversold because the last correction of the stock began in the first half of November and was 47% and that affected to the Indicator but we clearly observe that the price has begun to hold in the last week and could be the beginning to look for a good revaluation taking advantage of the strong volatility.

MACD is below its signal, if the price holds in the coming days oscillated between $4 and $5.5 the indicator could cross above its signal and confirm an entry to take position, with RSI in an oversold and MACD up his signal in the best scenario the price could reach up to 30% revaluation, estimating that it will touche below the first Fibonacci resistance at $7.