Chart of the Week: PDD Holdings
PDD is the symbol.
As you can see, since the low that was made in May around the $60 – $61 area, it gapped up, held that gap, and continues to make higher highs and higher lows on the chart. More recently, it’s made a run up towards the $90 level and nearly filled the gap from back in spring at around the $95 area. We think that this stock has got some legs to it.
Check out the relative strength here. It’s been making higher highs and higher lows. It’s got a nice steep angle, which means buyers are still coming in on PDD.
You can see the channel that was made over here doesn’t have quite as many tags to create an uptrend line. I still feel that this is a good representation of what the stock is doing. It was important to get above that June high, which is about the $82.50 area. We are comfortably above that point right now.
Weekly charts shows room for plenty of upside
Let’s look at the weekly chart. The MACD has a nice crossover on the weekly chart. And the trader’s dynamic, which takes a look at the relative strength versus the Bollinger bands. It’s on a buy signal now.
The stochastics are at a point where it’s almost overbought. It looks like it’s trying to roll over here. I think if we can get past this January high, $106 and change, I think we have a chance to catch the old all-time highs from January 2021 at about $212.
The weekly chart is quite strong and very constructive here. If we get a turn on these candlesticks to a teal or blue color, that’s going to give us another positive sign and arrow in the quiver for the bulls.
That’s PDD Holdings. I really like this name, and I think this has got some more upside here – at least in the very near term to the $95 level, and beyond that to $106 – $110 before it stalls.
Don’t miss a single one of Bob’s charts! Get the Chart of the Week in your inbox every week!
