The Pinduoduo $Pinduoduo Inc.(PDD)$ stock price fell by -0.581% on Wednesday, 19th Jul 2023 from $75.67 to $75.23. It has now fallen 4 days in a row. During the last trading day the stock fluctuated 5.90% from a day low at $75.23 to a day high of $79.67. The price has been going up and down for this period, and there has been a 4.72% gain for the last 2 weeks. Volume has increased on the last day by 913 thousand shares but on falling prices. This may be an early warning and the risk will be increased slightly over the next couple of days. In total, 9 million shares were bought and sold for approximately $700.35 million.

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 17.31% during the next 3 months and, with a 90% probability hold a price between $79.13 and $100.14 at the end of this 3-month period.

PDD Signals & Forecast

The Pinduoduo stock holds a sell signal from the short-term Moving Average; at the same time, however, there is a buy signal from the long-term average. Since the short-term average is above the long-term average there is a general buy signal in the stock giving a positive forecast for the stock. On further gains, the stock will meet resistance from the short-term Moving Average at approximately $76.69. On a fall, the stock will find some support from the long-term average at approximately $73.03. A break-up through the short-term average will send a buy signal, whereas a breakdown through the long-term average will send a sell signal. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). 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, July 13, 2023, and so far it has fallen -7.04%. Further fall is indicated until a new bottom pivot has been found. Volume rose on falling prices yesterday. This may be an early warning and the stock should be followed more closely.

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 $4.44 between high and low, or 5.90%. For the last week, the stock has had daily average volatility of 5.02%.

Our recommended stop-loss: $71.60 (-4.82%) (This stock has medium daily movements and this gives medium risk. There is a sell signal from a pivot top found 4 days ago.)

Trading Expectations (PDD) For The Trading Day Of Thursday 20th

For the trading day on Thursday, 20th we expect Pinduoduo Inc. to open at $76.71, and during the day (based on 14 day Average True Range), to move between $71.46 and $79.00, which gives a possible trading interval of +/-$3.77 (+/-5.02%) up or down from last closing price. If Pinduoduo Inc. takes out the full calculated possible swing range there will be an estimated 10.04% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $75.34 (0.15%) than the support at $71.42 (5.06%), 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.