PDD - Read to Fly?
Updated
PDD is ready to fly. Here are some solid reasons:
REASON 1 - Accumulation Completed
Down since February 2021, this e-commerce platform of China has taken a reversal. Entered accumulation zone in March 2022, now enough buying volumes and positive earnings have pushed it out of the accumulation zone. Breakout has occurred at 73 USD key price level, and so now stock seems to have entered advance zone while the key long-term resistance (All Time High) is at 214 USD - a gain of more than 100% possible.
REASON 2 - Higher Revenues & Net Income
The real fuel is provided by better earnings and further higher expectations in the future. Revenue has grown 23% in TTM while income has swelled 260% in TTM - both are impressive signals of continued growth. Further pedestal is provided by positive expectations of end of lock-down in China which can open-up locked industrial growth.
Risk
Still caution is needed as markets aren't out of wood.
Comment
PDD is following up-trending channel.Disclaimer
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