JD unable to break through key resistance level
JD.com Inc. (JD) Technical Analysis Report for Aug 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, JD ended Tuesday at 30.66 surging $3.50 (12.89%) on high volume, significantly outperforming the Nasdaq 100 (2.2%) following today's earnings report. This is the biggest single-day gain ever recorded for JD. com. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (JD as at Aug 13, 2019):
JD reported earnings of $0.33 per share before today's market open. With analysts having expected an EPS of $0.09, JD. com Inc. topped market expectations by 266.7%. The company's last earnings report was released on May 10, 2019, when JD. com Inc. reported earnings of $0.33 per share topping market expectations by 153.8%.
Tuesday's trading range has been $2.83 (9.88%), that's far above the last trading month's daily average range of $0.94. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for JD.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on August 8th, JD actually lost -1.60% on the following trading day.
The share managed to close back above the 100-day moving average at 29.17 for the first time since July 31st. Unable to break through the key technical resistance level at 30.68 (R1), the market closed below it after spiking up to 30.98 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 32.38, upside momentum might accelerate should the stock be able to break out to new highs for the year.
Among the 16 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for JD. com. Out of 73 times, JD closed higher 57.53% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.27% with an average market move of 0.94%.