Pinduoduo Stock Forecast
Green day on Wednesday for Pinduoduo stock after gaining 1.10%
(Updated on May 08, 2024)
The Pinduoduo stock price gained 1.10% on the last trading day (Wednesday, 8th May 2024), rising from $137.65 to $139.16. During the last trading day the stock fluctuated 3.14% from a day low at $136.00 to a day high of $140.27. The price has fallen in 6 of the last 10 days but is still up by 9.1% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 838 thousand more shares were traded than the day before. In total, 5 million shares were bought and sold for approximately $736.50 million.
The stockis at the upper part of a very wide and horizontal trend and normally this may pose a good selling opportunity but a break-up through the top trend line at $140.14 will give a strong buy signal and a trend shift could be expected. Given the current horizontal trend, you can expect Pinduoduo stock with a 90% probability to be traded between $109.19 and $139.36 at the end of this 3-month period. A break of a horizontal trend is often followed by a large increase in the volume, and stocks seldom manage to go directly from the bottom of a trend up to the top. Stocks turning up in the middle of a horizontal trend are therefore considered to be potential runners.
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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 $134.69 and $123.16. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Friday, May 03, 2024, and so far it has fallen -0.728%. Further fall is indicated until a new bottom pivot has been found.
Support, Risk & Stop-loss for Pinduoduo stock
Pinduoduo finds support from accumulated volume at $137.54 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested.
This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $4.27 between high and low, or 3.14%. For the last week, the stock has had daily average volatility of 4.18%.
The Pinduoduo stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stop-loss: $134.03 (-3.69%) (This stock has high daily movements and this gives high risk. The RSI14 is 78 and this increases the risk substantially. There is a sell signal from a pivot top found 3 days ago.)
Trading Expectations (PDD) For The Upcoming Trading Day Of Thursday 9th
For the upcoming trading day on Thursday, 9th we expect Pinduoduo Inc. to open at $138.48, and during the day (based on 14 day Average True Range), to move between $134.11 and $144.21, which gives a possible trading interval of +/-$5.05 (+/-3.63%) up or down from last closing price. If Pinduoduo Inc. takes out the full calculated possible swing range there will be an estimated 7.26% move between the lowest and the highest trading price during the day.
Since the stock is closer to the resistance from accumulated volume at $140.18 (0.73%) than the support at $137.54 (1.16%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.
Is Pinduoduo Inc. stock A Buy?
Several short-term signals are positive and we conclude that the current level may hold a buying opportunity, as there is a fair chance for Pinduoduo stock to perform well in the short-term period.
Current score: 1.215 Buy Candidate Unchanged
Predicted Opening Price for Pinduoduo Inc. of Thursday, May 9, 2024
| Fair opening price May 9, 2024 | Current price |
|---|---|
| $138.48 ( 0.491%) | $139.16 |
The predicted opening price is based on yesterday's movements between high, low, and closing price.
Trading levels for PDD
Fibonacci Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 142.75 | 2.58 % | |
| R2 | 141.12 | 1.41 % | ||
| R1 | 140.11 | 0.681 % | ||
| Current price: | 139.16 | |||
| Support | S1 | 136.85 | -1.66 % | |
| S2 | 135.84 | -2.39 % | ||
| S3 | 134.21 | -3.56 % |
Accumulated Volume Support & Resistance Levels
| Level | Price | |||
|---|---|---|---|---|
| Resistance | R3 | 0 | . | |
| R2 | 0 | . | ||
| R1 | 140.18 | 0.733 % | ||
| Current price | 139.16 | |||
| Support | S1 | 137.54 | -1.16% | |
| S2 | 132.17 | -5.02% | ||
| S3 | 122.30 | -12.12% |
FAQ
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