PDD Holdings Extends Rally With 4.49% Gain As Technicals Signal Bullish Momentum

PDD Holdings rose 4.49% in the most recent session, extending its winning streak to three days with a cumulative gain of 7.51%. This technical analysis evaluates the stock’s trajectory using multiple frameworks, with data-driven insights derived from approximately one year of historical price action.
Candlestick Theory
Recent candlesticks exhibit bullish momentum, notably with the 2025-09-17 session printing a long-bodied green candle closing near its high of $135.365 after testing support at $131.6. This follows two consecutive higher closes, forming a strong three-white-soldiers pattern. Key resistance is now established at the recent high of $135.37, while immediate support rests at the $131.60-$130.00 consolidation zone from September 15-16. A secondary support floor exists at $124.50-$123.00, where multiple daily lows consolidated in early September.
Moving Average Theory
The ascending alignment of moving averages confirms a sustained uptrend. The 50-day MA (currently near $124.50) crossed above the 100-day MA ($118.00) and 200-day MA ($112.50) in late August, creating a bullish Golden Cross. With the current price ($134.86) trading well above all three averages, the configuration signals robust intermediate and long-term momentum. The consistent elevation of shorter-period averages above longer ones reflects strong underlying trend strength.
MACD & KDJ Indicators
The MACD histogram has been expanding since early September, indicating accelerating upward momentum as the MACD line (12-day EMA) widens its gap above the signal line (26-day EMA). Concurrently, the KDJ oscillator shows the %K and %D lines crossing above 80 into overbought territory. While this typically suggests caution, the sustained upward slope of the KDJ lines aligns with the current bullish trend rather than signaling an imminent reversal.
Bollinger Bands
Volatility expanded sharply as price surged to the upper Bollinger Band ($134.00 on a 20-day basis) during the September 17 rally. This movement followed a prolonged period of band contraction between August and September, indicating a resolution of consolidation. Price closing near the upper band typically signals short-term overextension but also reflects strong directional conviction during breakout phases.
Volume-Price Relationship
The 4.49% surge on September 17 was validated by a 101% increase in volume compared to the 10-day average. This high-volume breakout contrasts with the relatively moderate turnover during prior minor pullbacks, confirming institutional participation in the uptrend. The volume profile supports sustainability, as accumulation days have consistently accompanied major upward moves since August.
Relative Strength Index (RSI)
The 14-day RSI now reads approximately 73, entering overbought territory above the 70 threshold. While this historically precedes pullbacks, its occurrence alongside new closing highs and strong volume reduces reliability as a standalone reversal signal. Contextually, RSI has not yet formed bearish divergence against rising prices, suggesting any retreat may prove temporary within the broader uptrend.
Fibonacci Retracement
Using the significant swing low of $97.32 (2025-05-27) and swing high of $155.67 (2024-10-04), key Fibonacci levels become apparent. The current price sits between the 61.8% retracement ($133.38) and the 78.6% level ($143.18). The decisive break above the 61.8% threshold now converts this level to support, opening potential for continuation toward the $143.18 resistance confluence point, which aligns with the February 2025 congestion zone.
Confluence is observed across trend-following indicators, with moving averages, MACD, and volume collectively validating the breakout. Divergence is noted in oscillators: RSI and KDJ register overbought readings that contrast with Bollinger Band expansion, implying near-term consolidation risk within the dominant uptrend. The technical structure suggests buying dips toward $131.60 support, targeting progression to the $143.18 Fibonacci target.