JD closes lower for the 2nd day in a row
JD.com Inc. (JD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, JD ended the week -1.87% lower at 49.90 after tanking $2.67 (-5.08%) today, significantly underperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day loss in over two months. Trading $0.83 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (JD as at May 22, 2020):
Friday's trading range has been $1.76 (3.5%), that's slightly below the last trading month's daily average range of $2.04. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for JD.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bullish Hikkake Pattern showed up on April 30th, JD actually lost -3.99% on the following trading day.
Prices are trading close to the key technical support level at 49.13 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for JD. com. Out of 76 times, JD closed higher 59.21% 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 55.26% with an average market move of 1.09%.