Pinduoduo stock: buy or sell
Jul 29th, 2021
Pinduoduo stock brief
- Pinduoduo closed on Wednesday at $91.89 after skyrocketing a 15.54% breaking a streak of 3 sessions in negative.
- Last February price started dropping and drawed 4 consecutive lower tops. shares price lost a -56.78% since the downtrend started.
- Pinduoduo Inc., through its subsidiaries, operates an e-commerce platform in the People's Republic of China.
Should I buy Pinduoduo stock?
All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best
Is $PDD stock a buy?
Currently, Pinduoduo stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $PDD will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems
Should I sell Pinduoduo stock?
How to know when is it time to sell Pinduoduo stock?. Much like when we have to buy shares, determining when is appropiate to sell is not a capricious decision, and we must use our own trading style. Our trading system selects very simple setups to guide us on when is the best moment to sell a stock. Be aware that these setups should not be used for selling short Pinduoduo stock
A guiding principle is that you should not mantain an open trade that generates higher than expected losses upon purchase. The timing to sell your stock should always be ruled by the stop-loss (automatic or manual)
Is it time to sell Pinduoduo stock?
Currently, Pinduoduo stock doesn't match any of our preferred sell setups, so if you own Pinduoduo shares and your operation is in profit probably is not time to sell now
In the previous month we couldn't find any rating for Pinduoduo
Pinduoduo stock analysis
Pinduoduo accumulates a price drop of -56.78% since its latest peak last February at $212.60. Like in all downtrends, the stock oscillates drawing lower highs and lows. In this case, we have seen 5 consecutive lower tops.
Supports and resistances
The current resistances are:
The current supports are:
Since the price broke down the lower band on Tuesday, the price bounced by 18.32%
Relative strength index
After breaking down the oversold zone yesterday, rebound back above with a reading of 36.2. This is a sign of strength for the Pinduoduo shares
Pinduoduo stock price history
Pinduoduo started trading on Jul 26th, 2018 priced at $26.50 per share1. Since then, PDD stock has risen by 246.75%, with an average of 82.25% per year. An investment of $1,000USD on the IPO would be valued $3,467.55 today.
1: Adjusted price after possible price splits or reverse-splits
Price target for Pinduoduo stock
Nobody knows how much a share will be priced tomorrow. However, many stock price forecasts are posted every day by banks, financial institutions and independent analysts.
The following table shows the price target released by brokerage institutions in the last month. Again, these forecasts are not direct recommendations for individual investors and should not be trusted blindly.
In the previous month we couldn't find any price target published for Pinduoduo stock.
Earnings and financials
Pinduoduo Inc. ($PDD) posted quarterly earnings of $-0.23 per share last May, highly uplifting the Market consensus estimate of $-0.42 per share. This quarterly report means an earnings surprise of 45.24%. Company's turnover was $3.4 billion compared to $3.2 billion predicted by market consensus.Same quarter one year ago, reported EPS was $-2.73, so recently reported EPS is an increase of 91.58%. Looking at revenues, figures skyrocketed a 238.89% compared to $65.4B year over year.
Pinduoduo ($PDD) posts quarterly earnings report mid next August.
Important:The thoughts contained in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have an understanding of the particular positions of the reader, his or her own financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are published for learning purposes only
|Wednesday, July 28th, 2021|
|Day range||$85.15 - $92.77|
|Average true range||$7.27|
|50d mov avg||$119.27|
|100d mov avg||$128.06|
|200d mov avg||$138.37|
|Earnings date||August 20th, 2021|