What's Next For JD.com Stock After The Pullback?

JD.com Inc. CODX shares fell Monday as many Chinese companies trade lower following reports the U.S.-China relationship is in a “stalemate” after a meeting between officials from the two countries.

JD.com Daily Chart Analysis

• Shares looked to have broken out of what technical traders call a bearish flag pattern and have been heading lower since.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average, indicating the sentiment in the stock is likely bearish.
• Each of these moving averages may hold as an area of resistance in the future.

Key JD.com Levels To Watch

• The stock saw a large drop before seeing a period of consolidation in what technical traders call a bearish flag pattern.
• The pattern looks to have been confirmed after the stock was able to fall below pattern support. The stock could see a further push if selling continues at the level it is at now.
• The Relative Strength Index (RSI) sits at 33 after falling throughout last week. This means there have been more sellers moving into the stock throughout the past couple weeks.

What’s Next For JD.com?

Bullish traders would like to see the stock find support somewhere and start forming higher lows. Bulls want to see the stock begin to form a higher low trendline and hold above this trendline. Bulls would also like to see the RSI start climbing.

Bearish traders would like to see the stock continue to fall lower. Bears want to see the RSI continue to fall and want to see it fall deep into the oversold range that starts at 33. Bears would like to see the stock continue to trade below the moving averages to keep the sentiment in the stock bearish.

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