Pinduoduo spikes - Analysis - 29-11-2022

Pinduoduo's stock (PDD) surged in the intraday levels after the company announced a 65% growth in third quarter earnings to $4.99 billion, surpassing estimates easily, with the stock spiking 12.62%, or 8.30 points, and settling at 74.05, with trading volumes surpassing 25.4 million shares, above 10-day averages of 11.4 million shares. 

Technically, the stock managed to pierce the important resistance of 73.00, amid the dominance of the correctional upward short-term trend, with positive pressure from the 50-day SMA, coupled with positive signals from the RSI.

Therefore we expect more gains for the stock, targeting the resistance of 83.75, provided the initial resistance of 73.00 was breached. 

Expected trend for today: Bullish