Trade of the Day – PDD Holdings Inc. (NASDAQ: PDD) November 7, 2023 223

Trade of the Day

PDD Holdings Inc. (NASDAQ: PDD)

(Current Price: US$107.13) – TECHNICAL SELL

Sell stop: US$106.33     Stop loss: US$112.80 (-6.08%)  

Take profit 1: US$98.00 (+7.83%)     Take profit 2: US$92.80 (+12.72%)    

 

 

(1): PDD Holdings Inc. did a retest of a rising wedge breakdown and the price closed with a shooting star candlestick pattern on 6th November, which provides a bearish signal

 

(2) & (3): This is supported with bearish divergence recorded on both the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) technical indicators, while the price was trading higher towards the uptrend channel resistance, indicating potential exhaustion of bullish momentum in the uptrend

 

(4) & (5): The price met resistance upon retest of the US$107.70 level, which was a previous support turned resistance following a double top formation

 

Should the price continue its bearish momentum, it could potentially retest the first support level at the recent swing low of US$98.00 earlier this month

 

It could then head towards the next support level at US$92.80, which is confluent with the uptrend channel support and previous horizontal support formed in September

Expected timeline of the trade is 1-4 weeks from the date of report issuance

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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