Back to top

Image: Bigstock

Pinduoduo Inc. Sponsored ADR (PDD) Just Reclaimed the 20-Day Moving Average

Read MoreHide Full Article

From a technical perspective, Pinduoduo Inc. Sponsored ADR (PDD - Free Report) is looking like an interesting pick, as it just reached a key level of support. PDD recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Moving Average Chart for PDD

PDD could be on the verge of another rally after moving 6.7% higher over the last four weeks. Plus, the company is currently a Zacks Rank #3 (Hold) stock.

The bullish case solidifies once investors consider PDD's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 3 higher, while the consensus estimate has increased too.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on PDD for more gains in the near future.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Pinduoduo Inc. Sponsored ADR (PDD) - free report >>

Published in