Strong Downtrend in JD Stock After the Double Top Formation

JD.com Inc. is a retail trade company that operates in the Internet retail sector. The company’s current CEO is Ran Xu and the company has its headquarters in Beijing. It has more than 450.6K employees. JD.com Inc. was founded in the year 1998 by Liu Qiandong, who is also known as Jeff Bezos of China.

The JD stock is trading with an EPS of 2.01 USD and a beta of 1.27. The aforementioned beta of the stock indicates that its price is slightly more volatile than the average of the market.

For the last three months, the JD stock has been trading with an average volume of 10.385M shares. Following that, the last trading session traded volume of the stock was 18.606M.

The dividend paid by the company in the year 2022 is $0.60 and the payout ratio of the company is 61.91%. The JD share has 1.362B shares listed in the market out of which 1.353B shares are freely floating.

Financial Performance For JD Stock

As per the reports of the recent quarter, the revenue of the company has advanced by 1.4% YOY. The reported gross profit has also advanced by 8.9%, resulting in $5.84B. The revenue of JD.com Inc. has been consistently advancing, but the profit margin has witnessed a consistent decline in the price.

Sellers are Continuously Dominating the JD Stock

The stock price of the JD is declining to lower levels following a very strong downtrend. It has been consistently forming lower low swings led by the selling pressure in the share price.

The price of the JD share took a pause while declining from the higher levels and led to the formation of the double top pattern. JD stock’s price later broke down below the previous swing. It is consistently declining to lower lows and breaking below the support levels.

Technical indicators like the EMA cross and the RSI are giving a sell signal on the chart. The share price has declined below the 50-day and the 200-day EMAs following a death cross on charts.

The RSI for the stock is also trading in the oversold zone, declining below the 30-level indicating the weakness in the JD stock price.

Conclusion

The profit margin of the company is witnessing a decline year-on-year despite an increase in revenue. The technical chart of the stock is also extremely bearish on the daily timeframe. Technical indicators on the JD stock chart are also giving a sell signal.

Therefore the JD stock price may continue to decline to further levels. It may also break the support levels because the downward momentum is strong.

Technical Levels

Support levels- $15.00 and $19.00
Resistance levels- $31.00 and $42.00

Disclaimer

The information provided in this article, including the views and opinions expressed by the author or any individuals mentioned, is intended for informational purposes only. It is important to note that the article does not provide financial or investment advice. Investing or trading in cryptocurrency assets carries inherent risks and can result in financial loss.