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Pinduoduo Inc. Sponsored ADR (PDD) Crossed Above the 200-Day Moving Average: What That Means for Investors
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 200-day moving average, and this suggests a long-term bullish trend.
The 200-day simple moving average helps traders and analysts determine overall long-term market trends for stocks, commodities, indexes, and other financial instruments. The indicator moves higher or lower along with longer-term price moves, serving as a support or resistance level.
Shares of PDD have been moving higher over the past four weeks, up 70.6%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that PDD could be poised for a continued surge.
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.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on PDD for more gains in the near future.