JD.com (JD) Remains supported by a bullish trend line

JD fell more than 7% after the 3Q result, where are the support and resistance levels?

Stocks (3)

JD.com (JD), a Chinese e-commerce company, announced that 3Q adjusted net income jumped 80.1% on year to 5.6 billion yuan ($0.8 billion) on net revenue of 174.2 billion yuan ($25.7 billion), up 29.2%. Annual active customer accounts rose 32.1% to 442 million in the twelve months ended September 30. Although the 3Q result beat the estimation, the stock prices fell 7.4% to the close price at $85.26.

Besides, the stock of JD.com trading in Hong Kong Exchange will join the Hang Seng China Enterprises Index from December 7. CICC projected that there would be $66M passive capital inflow. On the other hand, the company will spin-off its JD Health to list in Hong Kong Exchange for raising $3 billion.

From a technical point of view, although the ADR stock prices of JD.com posted a pullback from $92.65, it is still supported by a rising trend line drawn from February. In addition, the ascending 20-day and 50-day moving averages are playing the support role. The relative strength index still holds above the support level at 46.

Bullish readers could set the support level at $78.00, while resistance levels would be located at $92.65 and $98.40.

Source: GAIN Capital, TradingView

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.