Pinduoduo Holds Key Level as China Tech StabilizesChinese technology stocks like Pinduoduo were among the top performers in 2020. They’ve pulled back hard in the last two months, but now certain members of the group are showing signs of stability.
PDD could have the most interesting patterns. First is its recent bounce around $120, which matches a high-volume bullish gap from a strong earnings report on November 12.
Second, consider how that line corresponds with the rising 200-day simple moving average (SMA). Next is the upward-turning MACD.
PDD might not be well known in the U.S., but its $160 billion market cap makes it bigger than about 90 percent of the S&P 500. It gained more than 550 percent between April 2020 and February 2021.
We can also look at some of its peers like Bilibili, Vishops and Baidu.
BILI has basing pattern around $100:
VIPS has based out around its 200-day SMA with some kicker candlesticks near the lows:
BIDU has held $200 following a single high-volume bounce from under $180:
Consider last the Nasdaq Golden Dragon China Index , which tracks the broader Chinese technology group. It bounced twice at its 200-day SMA. Also notice how buyers defended 15,000, which was a peak in late December. Is old resistance new support?
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