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. :
- 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.
- 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).
- Monday open was a bearish gap down but the stock swiftly rebound from the support level at US$163.10.
- 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
