Is This Chinese Stock Your Next Short Play?
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As we say time and time again, our trading strategy is all about keeping things simple. Spotting a chart pattern on a higher timeframe is about as simple as it gets. Why? Because when a large number of traders all see the same, prominent pattern on their screens, it increases the likelihood that a high number of traders will all act on the same pattern.
These patterns usually have bullish or bearish connotation attached to them, so it inspires those traders to act in a certain way. Especially when you factor in how the stock’s price typically moves when those such patterns are present.
In this case we have a classic example of a head and shoulders pattern forming on Chinese stock PDD Holdings (PDD), which is a portfolio of business, the most prominent of which being Pinduoduo.
Check out my video for all the insight into this pattern and what it means for those looking to put on a trade here.
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