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Pinduoduo Inc. Sponsored ADR (PDD) Just Overtook the 50-Day Moving Average
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 50-day moving average, and this suggests a short-term bullish trend.
The 50-day simple moving average is one of three major moving averages used by traders and analysts to determine support or resistance levels for a wide range of securities. But the 50-day is considered to be more important because it's the first marker of an up or down trend.
Over the past four weeks, PDD has gained 19.7%. The company is currently ranked a Zacks Rank #2 (Buy), another strong indication the stock could move even higher.
The bullish case only gets stronger once investors take into account PDD's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors may want to watch PDD for more gains in the near future given the company's key technical level and positive earnings estimate revisions.