DailyPlay – Pinduoduo Inc (PDD) – October 28th, 2021

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The bearish DailyPlay for Thursday, October 28th is Pinduoduo Inc (PDD). PDD’s exposure to Chinese markets continues to weigh on performance. 

Technical View

• Failed retest at 100 D EMA and strong decline. 
• Bearish 1M and 6M trends
• Very weak technical score – 2 out of 10

Fundamental View

• Increased regulation in China poses a risk for growth 
• High exposure to Chinese markets. Demand is expected to be negatively impacted.
• Earnings Nov 24 

As this is a Credit Spread, look to take profits at 50% and cut losses at 100%:

• Take Profit: $1.95 Debit
• Stop Loss: $7.80 Debit

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