JD has lost a third of its value in just over a month. Let’s take a look if we can pick the stock up over the next days.
Elliott:
We are looking for a wave C with 5 sub-waves. We can count a completed 5-wave move to the downside now. Alternatively we expect one more wave to completion. These two interpretations give us two potential buy levels.
Geometry:
Price bounced at the lower boundary of the upward channel, which is the .5 fib mark of the downward facing channel.
Oscillators:
The RSI shows a bullish divergence. The Stochastic is oversold for over a month and due to move up.
How to trade it:
The two levels (green arrows) give us excellent risk-reward ratios to try long positions with tight stop losses. The lower level at 54 is more likely to hold when we expect an expanded flat correction. JD needs to re-gain the 21 day MA and hold it in order to further increase long exposure safely.
Elliott:
We are looking for a wave C with 5 sub-waves. We can count a completed 5-wave move to the downside now. Alternatively we expect one more wave to completion. These two interpretations give us two potential buy levels.
Geometry:
Price bounced at the lower boundary of the upward channel, which is the .5 fib mark of the downward facing channel.
Oscillators:
The RSI shows a bullish divergence. The Stochastic is oversold for over a month and due to move up.
How to trade it:
The two levels (green arrows) give us excellent risk-reward ratios to try long positions with tight stop losses. The lower level at 54 is more likely to hold when we expect an expanded flat correction. JD needs to re-gain the 21 day MA and hold it in order to further increase long exposure safely.