Technical Pulse: Pinduoduo Inc January 12, 2021 229

Pinduoduo Inc (US: PDD) Technical indicate a continuation of the bullish rally after a surprise opening gap to the downside and the high on Monday has filled the gap. :

  1. Pinduoduo has a potential extended wave 3 ongoing as the sub extended wave has display a strong breakaway gap from the dominant wave labelled wave 1 and 2.
  2. The extended sub-wave had a complex running flat of wave (ii) and as such, we believe that wave (iii) will be targeting 161.8%-200.0% expansion of wave (i)-(ii).
  3. Monday open was a bearish gap down but the stock swiftly rebound from the support level at US$163.10.
  4. Prices is trending above both the 22, 50 moving average and the uptrend line

 

*Timeline of the trade is 3 weeks from the date issued.

 

CHART LEGENDS

Moving averages

Green dotted line = 22 Periods MA

Blue dotted line = 50 Periods MA

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Profile photo of Chua Wei Ren

Chua Wei Ren
Technical Analyst
Phillip Securities Research Pte Ltd

Wei Ren specialises in Technical Analysis and has 9 years of experience in studying classic technical price action. He also study and research extensively on Elliott wave theory, Dow Theory and Supply & Demand strategies as he believes that history plays an important role in how the market is reflected in the future.

He graduated with a Bachelor of Economics and Finance from University of Murdoch.

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