JD breaks below Tuesday's low
JD.com Inc. (JD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
JD ended Wednesday at 75.09 losing $1.91 (-2.48%) on low volume, underperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 76.59, JD. com confirmed its breakout through the previous session low after trading up to $1.64 below it intraday.
Daily Candlestick Chart (JD as at Sep 16, 2020):
Wednesday's trading range has been $2.12 (2.75%), that's below the last trading month's daily average range of $3.02. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for JD.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 73.33 (S1).
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.
Selling might accelerate should prices move below the nearby swing low at 73.33 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for JD. com. Out of 238 times, JD closed higher 54.62% 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 59.66% with an average market move of 1.76%.