PDD stock was in a bullish trend since the end of October 2022, forming higher lows and entered 2023 with the same positive sentiment. The trend was halted when the PDD price formed annual highs at $106.38. The high triggered a drop in the price, which resulted in the break of the upward trend.
Bears pushed PDD stock price down near the $84 level. The stock price did try to retest the annual, but the bears had active participation near the $96 level and didn’t let the price rise above it. The stock price then entered into a downward channel forming lower lows and lower highs which led to the formation of recent support at the $59.97 level.
The support held the PDD price twice, and the earning report of Quarter 1, 2023, did the rest to turn the price bullish. The previous candle rose 18.99% after the earnings report’s release, and the price escaped the downward channel.
PDD stock soared, making it the biggest gain in 14 months after Q1 profit. If bulls can push the stock price above $81, there is a higher probability that the price might head toward $95, filling the gap to the left. This move would cause a gain of roughly 18% from the $81 level. However, firstly PDD price needs to gain bullish momentum to cross above the minor resistance of $77.5.
PDD Stock Holding INC. Quarter 1 Earning Report
The company beats the consensus revenue as well as earnings per share estimates. PDD Holding reported revenue of $5.50 billion, rising from $3.35 billion reported in the same quarter of last year.
The net income has turned out to be $1.18 billion doubling the net income of last year’s first quarter. The consensus estimated earnings per share to be $0.65, which turned out to be $1.01, a surprise of 0.36 (55.03%).
Will PDD Price Rise Above $81 Resistance Level?
Source: PDD Stock Price by TradingView.
RSI has shot up to 59.85, indicating bullish momentum in the price. However, the impulse move has shown increased bullish momentum; there is a chance for correction. Chaikin money flow score is 0.06, suggesting increased strength in the market.
PDD price has positively crossed the 20 and 50-day EMA and is headed toward 100 and 200-day EMAs. The stock price has reached above Bollinger’s upper band, suggesting a possible pullback.
Conclusion
The earning report has ignited bullish momentum in the price. PDD holding beats estimates of both revenue as well as EPS. Analysts have increased their expectations for price from $105 to $120. The technical parameters are mixed, but there might be a possibility of a pullback before the price rises further upwards.
Technical Levels
Major support: $59.97 and $52
Major resistance: $81 and $95
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/05/29/pdd-holding-pdd-stock-pdd-price-soars-after-q1-results/