JD - Washing The Stops Out First?A follower asked to chart JD.com
And since it's Sunday and I'm sipping my fresh brewed coffee from my "La Pavoni" Espresso Machine, I have time to help out a buddy in the Trading Space.
Here we go:
The Monthly (Daily will follow below) Chart is nice and orderly. It has a good Base. And we also see where the last bunch of buyers where from 2019 to 2020.
JD had it's shiny days when it went up to P0.
From there the clouds began to darken. It was, and still is on the path down to a potential P5, which is not achieved yet.
So, that would mean a break of the Base?
Yes!
But, what about the Last Real Buyers (Green Box)?
Put it in perspective. These old buyers had the Job to not let the Stock go down anymore, but to encourage the CROWD to buy more. Big boys where already loaded there...
Any other ideas why a break of the Base and a Wash of the Stop/Loss orders could happen?
Yes.
1. If I where one of the Whales who's behind JD.com, I would want to buy low and sell high. So, my advice to the Market Maker would be to take out all the Stop/Loss orders, sitting below the Base. Throw the final Max. Pain to all HODLERs of JD and prove their bravery.
And then, when everyone and their Mothers throw the towel, I would pick them all up...of course for a very low price.
Please, if you have JD in your portfolio, don't hate me for this. I just throw out my thoughts and tell about my experience. I love you §8-)
Is there more...?
Sure:
2. The Fork
The red Pitchfork projects the most probable path of price. That's the nature of the Andrews Pitchfork. And it does it very well as we see.
Until price has climbed above the U-MLH (The Upper-Medianline-Parallel) there is absolutely no intention that JD will start to stop from falling.
So there we have it.
Can we build a plan to buy out of this information?
Why not:
Wait for the wash.
Wait for something important that shouts in your face.
Then start to gather the facts together that give you many good reasons to buy JD for the long term and make a killing in the next Pump. For example:
1. Wash is over
2. Price climbed above the Base again
3. Price is above the U-MLH
4. The earth did not end despite the climate activists predicting it for the 48th time and the Christmas Tree didn't burn down last year §8-)
Wish you all a happy Sunday and - Go get your free ForkTrading-BLUEPRINT on my website.
T8N3
