PDD: You should be aware of this chart pattern!
Hello traders and investors! Let’s talk about PDD today! It is the first time I analyze this stock, and I hope my insights can be helpful. In this analysis, I'll present you two strategies to follow.
First, in the 1h chart, we have a Descending Triangle chart pattern, and the trend is clearly bearish, as the 21 ema is pointing down, and the price can’t trade above it.
This makes the situation more favorable to the bears, at least in the short-term, and as long as we don’t see a clear breakout upwards from this Triangle, the bear trend will persist. This Triangle is the best chance PDD has to reverse this bearish sentiment.
Now, there’s two strategies we can use. First, if we see an upwards breakout, second, if we see a downwards breakout. Either way, this Triangle is the key, and the targets are better seen in the daily chart:
If PDD breaks this Triangle downwards, then it’ll just seek the next support level, and the most meaningful support is the red line at $ 121.28. Then we’ll see how to proceed. Maybe PDD will lose this line, or it could do a nice candlestick pattern and trigger a possible Double Bottom pattern – we can’t know for now.
On the other hand, if PDD does an upward breakout from the Triangle in the 1h chart, the next resistance is the target, which is at the green line ($ 152.06). This is also a pivot point, and the trigger of an Inverted H&S chart pattern, as evidenced by the green area. If triggered, this pattern will officially reverse the trend in the mid-term, and PDD would have a first target at $ 188, and it could go even higher, above $ 200.
Since PDD is dropping with low volume, this makes me wonder if this bearish movement will have the strength to persist.
Either way, we must keep watching PDD closely, and if you liked this analysis, remember to follow me to keep updated with my daily studies, and please, support this idea with your like!
Thank you very much!
First, in the 1h chart, we have a Descending Triangle chart pattern, and the trend is clearly bearish, as the 21 ema is pointing down, and the price can’t trade above it.
This makes the situation more favorable to the bears, at least in the short-term, and as long as we don’t see a clear breakout upwards from this Triangle, the bear trend will persist. This Triangle is the best chance PDD has to reverse this bearish sentiment.
Now, there’s two strategies we can use. First, if we see an upwards breakout, second, if we see a downwards breakout. Either way, this Triangle is the key, and the targets are better seen in the daily chart:
If PDD breaks this Triangle downwards, then it’ll just seek the next support level, and the most meaningful support is the red line at $ 121.28. Then we’ll see how to proceed. Maybe PDD will lose this line, or it could do a nice candlestick pattern and trigger a possible Double Bottom pattern – we can’t know for now.
On the other hand, if PDD does an upward breakout from the Triangle in the 1h chart, the next resistance is the target, which is at the green line ($ 152.06). This is also a pivot point, and the trigger of an Inverted H&S chart pattern, as evidenced by the green area. If triggered, this pattern will officially reverse the trend in the mid-term, and PDD would have a first target at $ 188, and it could go even higher, above $ 200.
Since PDD is dropping with low volume, this makes me wonder if this bearish movement will have the strength to persist.
Either way, we must keep watching PDD closely, and if you liked this analysis, remember to follow me to keep updated with my daily studies, and please, support this idea with your like!
Thank you very much!
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