I just took profits on a PDD position this morning after a 20% gap up.
I think the chart is a good study of simple Support & Resistance levels on a long term bullish chart. Note the breakouts and backtests.
This company was founded not that long ago and is already the #3 online retailer in China. Very impressive, and the growth potential is high.
I went long the recent backtest of 100 after the breakout. Buying the Oct backtest was a good idea too, but the general market was looking mighty bearish at that time! If you can fade general emotions, the backtest level provides a great risk/reward.
Nearby earnings made me choose to sell cash covered puts (Jan 100s) and this move killed almost all the premium.
It's a still bullish long term, IMO.
I think the chart is a good study of simple Support & Resistance levels on a long term bullish chart. Note the breakouts and backtests.
This company was founded not that long ago and is already the #3 online retailer in China. Very impressive, and the growth potential is high.
I went long the recent backtest of 100 after the breakout. Buying the Oct backtest was a good idea too, but the general market was looking mighty bearish at that time! If you can fade general emotions, the backtest level provides a great risk/reward.
Nearby earnings made me choose to sell cash covered puts (Jan 100s) and this move killed almost all the premium.
It's a still bullish long term, IMO.