The Pinduoduo stock price gained 1.35% on Wednesday, 26th Jul 2023, rising from $82.99 to $84.11. 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 3.96% from a day low at $82.26 to a day high of $85.52. The price has been going up and down for this period, and there has been a 11.64% gain for the last 2 weeks. Volume fell on the last day by -7 million shares and in total, 8 million shares were bought and sold for approximately $704.67 million. You should take into consideration that falling volume on higher prices causes divergence and may be an early warning about possible changes over the next couple of days.
The stock lies in the middle of a 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 22.14% during the next 3 months and, with a 90% probability hold a price between $87.14 and $107.32 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 $78.24 and $74.67. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday, July 06, 2023, and so far it has risen 24.26%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.
Support, Risk & Stop-loss for Pinduoduo stock
Pinduoduo finds support from accumulated volume at $80.93 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
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 $3.26 between high and low, or 3.96%. For the last week, the stock has had daily average volatility of 4.02%.
Our recommended stop-loss: $81.65 (-2.92%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 79 and this increases the risk substantially. There is a buy signal from a pivot bottom found 14 days ago.)
Trading Expectations (PDD) For The Trading Day Of Thursday 27th
For the trading day on Thursday, 27th we expect Pinduoduo Inc. to open at $83.96, and during the day (based on 14 day Average True Range), to move between $80.34 and $87.88, which gives a possible trading interval of +/-$3.77 (+/-4.48%) up or down from last closing price. If Pinduoduo Inc. takes out the full calculated possible swing range there will be an estimated 8.96% move between the lowest and the highest trading price during the day.
With no resistance above and support from accumulated volume @ $80.93, some $3.18 (3.78%) from the current price of $84.11, our system finds the risk reward attractive.
Is Pinduoduo Inc. stock A Buy?
Pinduoduo holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.
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