The Pinduoduo $Pinduoduo Inc.(PDD)$ stock price gained 6.05% on Wednesday, 12th Jul 2023, rising from $71.04 to $75.34. It has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. During the last trading day the stock fluctuated 4.25% from a day low at $72.64 to a day high of $75.73. The price has risen in 7 of the last 10 days and is up by 5.11% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 8 million more shares were traded than the day before. In total, 14 million shares were bought and sold for approximately $1.08 billion.

The stock lies in the middle of a very wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 11.07% during the next 3 months and, with a 90% probability hold a price between $71.34 and $92.33 at the end of this 3-month period.

PDD Signals & Forecast

The Pinduoduo stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $71.05 and $70.95. A breakdown below any of these levels will issue sell signals. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Thursday, June 15, 2023, and so far it has fallen -6.78%. Further fall is indicated until a new bottom pivot has been found. Furthermore, there is currently a sell signal from the 3 month Moving Average Convergence Divergence (MACD).

Support, Risk & Stop-loss for Pinduoduo stock

On the downside, the stock finds support just below today's level from accumulated volume at $71.42 and $67.63. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Pinduoduo finds support just below today's level at $71.42. If this is broken, then the next support from accumulated volume will be at $67.63 and $65.32.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $3.09 between high and low, or 4.25%. For the last week, the stock has had daily average volatility of 3.95%.

Our recommended stop-loss: $72.10 (-4.31%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 17 days ago.)

Trading Expectations (PDD) For The Trading Day Of Thursday 13th

For the trading day on Thursday, 13th we expect Pinduoduo Inc. to open at $74.57, and during the day (based on 14 day Average True Range), to move between $71.89 and $78.79, which gives a possible trading interval of +/-$3.45 (+/-4.59%) up or down from last closing price. If Pinduoduo Inc. takes out the full calculated possible swing range there will be an estimated 9.17% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $76.10 (1.01%) than the support at $71.42 (5.20%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is Pinduoduo Inc. stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Pinduoduo stock to perform well in the short-term. We have upgraded our analysis conclusion for this stock since the last evaluation from a Hold/Accumulate to a Buy candidate.