JD still stuck within tight trading range
JD.com Inc. (JD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
JD ended the month 10.77% higher at 60.18 after gaining $0.60 (1.01%) today, underperforming the Nasdaq 100 (1.96%). Closing above Monday's high at 60.00, the market confirmed its breakout through the prior session high after trading up to $0.90 above it intraday.
Daily Candlestick Chart (JD as at Jun 30, 2020):
Tuesday's trading range has been $1.69 (2.85%), that's slightly below the last trading month's daily average range of $1.93. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for JD. Prices continued to consolidate within a tight trading range between 58.25 and 61.06 where it has been caught now for the whole last trading week.
Although the stock is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 60.95 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 58.25 where further sell stops could get triggered. With prices trading close to this year's high at 62.42, upside momentum might accelerate should the share be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for JD. com. Out of 459 times, JD closed higher 51.63% 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 58.61% with an average market move of 1.10%.