JD pushes through key technical resistance level
JD.com Inc. (JD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, JD ended Thursday at 42.01 gaining $0.66 (1.6%), significantly underperforming the Nasdaq 100 (5.72%). Trading up to $1.38 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (JD as at Mar 26, 2020):
Thursday's trading range has been $3.63 (8.7%), that's above the last trading month's daily average range of $2.96. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for JD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 42.00 (now S1), which is likely to act as support going forward. Prices are trading close to the key technical resistance level at 44.12 (R1). After having been unable to move lower than 40.52 in the previous session, the share found buyers again around the same price level today at 40.33. The last time this happened on March 13th, JD actually lost -11.26% on the following trading day.
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 45.34, upside momentum could speed up should the market be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for JD. com. Out of 139 times, JD closed higher 58.27% 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 eight trading days, showing a win rate of 50.36% with an average market move of -0.29%.