JD runs into sellers again around 42.58
JD.com Inc. (JD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
JD ended the week 4.95% higher at 41.97 after edging lower $0.04 (-0.1%) today on low volume, slightly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.45 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JD as at Feb 14, 2020):
Friday's trading range has been $0.99 (2.35%), that's slightly below the last trading month's daily average range of $1.19. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for JD. Prices continued to consolidate within a tight trading range between 41.06 and 42.58 where it has been caught now for the last three trading days.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on January 29th, JD lost -1.66% on the following trading day.
After having been unable to move above 42.41 in the previous session, the stock ran into sellers again around the same price level today, missing to move higher than 42.58.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the nearby swing low at 41.06 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for JD. com. Out of 140 times, JD closed higher 55.00% 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 57.86% with an average market move of 1.68%.