Is JD a Chinese economy equity setting up a reversal? Long

JD.com, Inc.NASDAQ

Description

⋅ Jul 18, 2023 1:53 AM

JD on the long term weekly chart appears to be in a descending wedge pattern which

would generate a bias for a breakout upside. Price is now supported by the one standard

deviation line below the VWAP bands anchored to 2019. The analysis of the ultralong term

volume profile is that the Point of Control is just below price and that the vast majority of

trading volume has been above the current price. I can readily presume that JD is at or

near a bottom and most certainly the 1, 2, and 3 year lows. Analysis on higher time frames

such as the weekly are more likely to be accurate with good signals. On the MACD signals

have crossed in mid-May and now ascending in parallel toward the zero line while price

is bouncing around at what I will call the bottom. Said another way, the MACD is showing

bullish divergence. The upside here over a long term could be as much as 250% and much

much more with a long expiration options contract. I will open a long trade here in

a small position with a stop loss below the POC line and DTA into it over time whenever there

is a pivot low on the weekly chart. I am confident that the Cinese economy with supposedly

zero inflation will be an excellent backdrop for Chinese stocks to run higher in due time.

Trade active

⋅ Jul 19, 2023 8:37 PM

A little movement today- base building for a big leg up I think.

Comments

grahammk

⋅ Jul 18, 2023 4:03 AM

I liked your chart and JD's potential. 4.5 weeks for 25% is what I'm seeing after also doing up a chart and posting it to Minds.
Thank you. Good Find and Analysis.

AwesomeAvani

⋅ Jul 18, 2023 4:12 AM

@grahammk, Thanks 25% monthly does not sound awesome but slow and steady wins the race, and compounding is magic. I like a few things with lower volatility to balance out
my typical fast and hard trades that flow the adrenaline. I like to think that some foreign stocks in a portfolio is exploiting the concept of diversification. On another trading site, I am a "bottom-feeding grinder" ...

AwesomeAvani

⋅ Jul 19, 2023 8:37 PM

A little movement today- base building for a big leg up I think

AwesomeAvani

⋅ Jul 18, 2023 2:12 AM

Some traders or chart technicians might call this a 4-year long bull flag construction- if so, I await the bullish continuation which could be impending.