Welcome back for another exciting week of trading. Today we have an old favorite on watch today as it has set up one of our favorite setups. Make sure you check out the full video breakdown below for all the details on what I am seeing.

PDD Holdings (PDD) has created a large head and shoulders pattern with a neckline that currently sits around $83. A break of that line would confirm that pattern and likely lead to much lower prices. For my students and readers, this pattern sounds awfully familiar and that’s because it is.

I talk a lot about high probability setups and a classic head and shoulders pattern is usually a high probability setup. When we see these, we definitely want to take note.

And for even more about my favorite stocks, setups, and strategies, join my students and I in The Profit Machine. Every week, you will get exclusive access to all things option trading, from the stocks I trade the most, and the setups I look for when trading. The best part, you’ll receive all my trades every step of the learning process, so not only will you get a world-class education, but you’ll also earn while you learn.