Is KE Holdings (BEKE) Heading For A Massive Breakthrough Or A Sudden Drop?

China-based KE Holdings Inc. (BEKE), a real estate company that provides a platform for housing transactions and services, operates an integrated online and offline platform for housing transactions and services. The company operates in three segments and facilitates various housing transactions. Beike, launched in 2017, is a subsidiary of KE Holdings Inc. and operates as a real estate brokerage, online real estate marketing platform, and search engine. The company owns and operates Lianjia and Deyou, and reported owning 160 real estate brokerage brands with a combined total of 21,000 brokerage stores across 98 cities in China. The site received an average of 3.5 million visits per day in 2019. BEKE is listed on NYSE as ADR.

Wyckoff Selling Climax Turned Accumulation

BEKE started 2021 in the Wyckoff distribution phase and was in a down trend until August. It then bounced in a trading range before a Wyckoff last point of supply (LPSY) in March 2022 took the price down further. The Wyckoff sign of weakness (SOW) was impulsive with increased volume. BEKE formed a selling climax (SC) at $7.30 and the automatic rally on 16 Mar came with a big spike in volume, which was likely supply absorption by the institutional value investors.