Technical Pulse: Pinduoduo Inc. January 11, 2023 145

 

Pinduoduo Inc. (NASDAQ: PDD) Potential pullback in the price to retest the uptrend channel support and previous neckline resistance turned support at US$71.30:   

 

  1. The price formed a bearish reversal evening star candlestick pattern on 10 January at the confluence of uptrend channel resistance and previous swing high of US$95.58 in November 2021.
  2. The Moving Average Convergence Divergence (MACD) technical indicator is currently displaying weak momentum as it made a lower high while price made a higher high recently, which is a bearish divergence signal.
  3. The price could retest the US$71.30 level in the support zone of US$66-75, confluent with the uptrend channel support and a previous neckline resistance that the price broke out of, which has now turned into support.

 

 

*Expected timeline of the trade is 13 weeks from the date of report issuance.

 

 

 

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

 

 

 

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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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