The image of several charts related to China's companies has turned quite ugly lately. I was reading some articles concerning China, JD.com and looking also at Investors' comments as to several China stocks. Although equity markets became cloudy lately, looking at JD.com I do not see the sky falling. According to my calculations we had the first phase of uptrend (in 5 Waves) and we are now at the final stages of the move down (in 3 Waves). As soon as C ends - we are not far away from that level - I believe that JD.com will start a new and very important phase of uptrend. I have as target $60+ for this phase, then a 4th down and a 5th phase up which will be higher (I did not have enough space to place it). But for now let's focus at the end of II with the C and then there will be time to discuss the $60+ target. The C will most probably end just above or at the yellow rectangle. Once there is confirmation of the new phase up, I will update the analysis.
What to do: the simple way is to gradually accumulate stocks of JD.com, a really excellent company. Now that there is fear for China stocks, the period seems interesting. Another possibility that I am thinking, is to start picking as of today some Call options Val. Dec 2018, Strike price $33 ($2.30 at this moment)
be “Fearful when others are greedy and greedy when others are fearful.” as the Great WB once said.
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WB for Warren Buffett of course and not a stock as the system showed...
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JD behaves well. Bottom may have been set at $32. The Call Options Strike price $33 Validity December 2018 are now at $2.70
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The C continues its formation. I like what I see and I would like to have soon the new move UP. The stock is closely followed and its Call Options too.
Trade active
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Although today's open is considered as a bad one, the drop of the stock remains within acceptable limits for c. Of course I wanted to see the stock react at higher levels. But looking at the fundamentals and at the diagram of the stock I continue to maintain the same analysis. Trade War is all over the news but most of it IMO is already priced in. The Call Options Strike price $33 Validity December 2018 are now at $1 and I continue to like them. The $30 Call Option same Validity is at $2
Trade active
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IMPORTANT Today's move is changing the extension of c It can now reach approx $24 which is the max possible level. Although I was not expecting such a move, price must be respected. I maintain my bullish view for the medium and long term but it is clear that now the stock is under heavy pressure. I will follow closely the Call Options of the company because I insist that there will be a great opportunity here. I have the same opinion for several other Chinese stocks that are traded in USA
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On the 4H chart the picture is the following: If we saw V then price must continue its uptrend and find the necessary thrust to go above $31. My opinion is that V will land a little lower than current levels and now we see just a reaction. Price will guide us.
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It remains weak and this is not a good sign. The problem with such weakness is that any move up can form into a reaction and just a reaction (not a new uptrend). Although it looks fundamentally undervalued, price action is ruthless. Still keeping my position but I am not going to add until I see a reversal of the correction. The knife JD.com keeps falling and it must first make some rebounds once it reaches the floor and then try to catch it...
@whynow111, Unless you meant IQ and not JD then I think 20.00 is possible.
rox2018
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@whynow111,
TIme to buy?
winstox
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@rox2018, this is an interesting opinion. However since markets have been damaged so far and specially the China stocks, if you buy, treat it for now as a speculative move and not as a long term position. I like your approach
veegee119
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Which other stocks? BABA is a bit high priced for me but I also have a position in IQ.
winstox
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@veegee119, IQ needs some further move down to end its correction. I will prepare an analysis on IQ. The company is good, solid expansion. There are others too for which gradually I will post their analysis.
veegee119
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@winstox, If you get a chance would love to see your analysis of IQ. From reading through other ideas and today's chart looks like it might have hit bottom unless it falls through 24.50. Seams logical.
winstox
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@veegee119, Hi, I do not think that the bottom is in yet but I need to study the chart. I will post an analysis today.
veegee119
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@winstox, Thanks, will look out for it. :-) learning a lot from others charts on this site. Much appreciated.