$PDD looks promising for more upside

22 sept. 2022

From Dec. you can see a bottoming formation on the daily chart, and price is back above the yellow line now. 20sma is sloped upward while price has taken a breather and brought RSI down to retest 50. RSI closed below 50 on 21Sep. If today it is back at/over 50 after market close, then today's candle is a signal for another leg up. In order for this RSI 50-test to trigger calls, the stock has to trade over today's high on Friday, 23Sep.

There is an unfilled gap ~54.70, moving back down to the 200sma. I would exit swing calls if the stock does not move higher in the next day or two because this trade idea is based on a continuation move higher.

23 sept. 2022

Note

This flipped down with the broad market selling today. I am keeping the stock on watch as there is a little room down to the weekly 20sma, and I think once all this selling ends this stock will move fast to the upside. Yesterday as SPX went up briefly in the afternoon, PDD made a quick move up to 64 where there was a big volume shelf. My point is that it took little to move this stock higher, so it is worth keeping it on watch, especially since stock and options are low cost.