Is JD a Chinese economy equity setting up a reversal?
Updated
JD on the long term weekly chart appears to be in a descending wedge pattern which
would generate a bias for a breakout upside. Price is now supported by the one standard
deviation line below the VWAP bands anchored to 2019. The analysis of the ultralong term
volume profile is that the Point of Control is just below price and that the vast majority of
trading volume has been above the current price. I can readily presume that JD is at or
near a bottom and most certainly the 1, 2, and 3 year lows. Analysis on higher time frames
such as the weekly are more likely to be accurate with good signals. On the MACD signals
have crossed in mid-May and now ascending in parallel toward the zero line while price
is bouncing around at what I will call the bottom. Said another way, the MACD is showing
bullish divergence. The upside here over a long term could be as much as 250% and much
much more with a long expiration options contract. I will open a long trade here in
a small position with a stop loss below the POC line and DTA into it over time whenever there
is a pivot low on the weekly chart. I am confident that the Cinese economy with supposedly
zero inflation will be an excellent backdrop for Chinese stocks to run higher in due time.
would generate a bias for a breakout upside. Price is now supported by the one standard
deviation line below the VWAP bands anchored to 2019. The analysis of the ultralong term
volume profile is that the Point of Control is just below price and that the vast majority of
trading volume has been above the current price. I can readily presume that JD is at or
near a bottom and most certainly the 1, 2, and 3 year lows. Analysis on higher time frames
such as the weekly are more likely to be accurate with good signals. On the MACD signals
have crossed in mid-May and now ascending in parallel toward the zero line while price
is bouncing around at what I will call the bottom. Said another way, the MACD is showing
bullish divergence. The upside here over a long term could be as much as 250% and much
much more with a long expiration options contract. I will open a long trade here in
a small position with a stop loss below the POC line and DTA into it over time whenever there
is a pivot low on the weekly chart. I am confident that the Cinese economy with supposedly
zero inflation will be an excellent backdrop for Chinese stocks to run higher in due time.
Trade active
A little movement today- base building for a big leg up I think.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.