Has JD found a bottomOne of the casualties of the US/China trade war has been JD. Long term it has now touched 19-20 for a bottom three times. Will it hold? I think the company has a lot going for it. But investors have been super bearish on Chinese tech these past 6 months or so. I think this will depend more on negotiation and escalation of trade war than technical analysis.
JDD trade ideas
Sell the farm and buy JDStrong RSI bullish divergence. Recent completion or soon to be completion of wave 5 @ below ICO price.
Negative news is no longer affecting the stock price as much, as the momentum of the sellers are weakening due to the smaller price decreases. Once sellers are out of bullets, only buyers are left. Buy JD hand over fist.
A bottom for JD.com?As you can see from the picture, a classic bottom divergence pattern forms. Once we see a 'gold cross' of MACD in next week(usually it takes 3-4 days to happen), a short term buy is suggested.
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JD: Earnings Stock of the Day JD.com has been in a downtrend since it topped early this year. This weekly chart shows why it is no longer an ideal sell short. The stock has declined steadily, losing more than 50% of its price value and JD is now at a support level that is strong, where buyers are likely to start moving in. At this time, a sideways pattern is likely, or a bounce up today if earnings are showing growth and stronger revenues.
JD forming bullish divergence inside descending triangleDescending triangles tend to be bullish consolidation pattern. Confirmation will be achieved upon breakout of the triangle. Long positions would be promising to open in the range of $21-24 with a short term target of $30-31. Longer term we think this stock can go back to $100.
$JD - JD.com $10M Bearish Bet$JD - JD.com saw a big $10M+ bearish bet today via the Jan'19 $70 Puts (very deep in the money - current stock price ~25.50) with 2,400 contracts purchased for ~$4,400 per contract.
The chart supports the bearish prediction with the price having been respecting the 50d ema for the majority of the summer on the 2H chart.
Medium term target - $23.00-23.50 area by mid-October (long term support levels)
Playing the Stoch'sA lot of fundamentals changed with JD recently but playing the Stochastic RSI before the news would've been very profitable.
Bull Div in the blue gave a nice relief bounce until the Hidden Bear Div stopped the party.
IMO the aggression of the sell off (from a price perspective) once the news about Liu hit, suggests momentum was already subsiding.
I'll be knife catching this one soon when the turbulence dies down a little. All in at $22.