A stock we highlighted not too long ago is again making its way on to our trading screens. After confirming its head and shoulders with the break below 90 support, PDD (PDD) rallied back up to hit 90 as resistance. This previous level of support has now turned resistance, as the stock moves back up to this level, traders are given a second chance to possibly enter a short trade.

Not only is the stock retesting this level, but in doing so, the stock has also begun to form a bear flag formation, which often implies lower prices are to come.

Be sure to watch the video below so you know all the levels and patterns we are looking at. This could help you ace your next trade.

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Good Luck!

Christian Tharp, CMT