Yesterday, we looked at a Daily Price Chart and the OBV line for Docusign, Inc. noting the stock’s OBV line is sloping up.
Today’s chart is for Pinduoduo, Inc. (NASDAQ: PDD).
Pinduoduo, Inc., through its subsidiaries, operates an e-commerce platform in the People’s Republic of China.
It operates Pinduoduo, a mobile platform that offers a range of products including apparel, shoes, bags, mother and childcare products, food and beverage, fresh produce, electronic appliances, furniture and household goods, cosmetics and other personal care items, sports and fitness items, and auto accessories.
Now, the Daily Price Chart below shows that PDD has been making a series of 52-Week Highs since mid-May.
Plain and simple… a stock doesn’t just hit a new 52-Week High unless it is in a very powerful uptrend.
But as we know, stocks in a price uptrend do not advance in a straight line. There are always price retracements along the way.
PDD experienced periodic price pullbacks during its strong advance since April.
Traders can get a lower risk entry point after a 3% to 5% price retracement as the stock normally resumes its price uptrend after such retracements.
We’ll be sure to continue following Pinduoduo, Inc. as it climbs to new heights, while watching for price retracements.
Editor, Chart Of The Day