- 1
JD stock price tumbled 8% in the previous intraday session. - 2
JD.Com stock price hit a multi-year low. - 3
JD stock price is trading below the 200-day EMA showcase downtrend.
JD stock price fell 8% in a single day and formed a giant bearish candle supported by high selling volume. It seems some big investors had sold off their holdings in the open market.
JD.Com stock price hit record lows which created a panic scenario and raised concerns for its existing long-term investors.
On a daily time frame, the price pattern of the JD is highly bearish. It continues to decline by forming lower low swings and keeps on eroding the portion of the market capitalization.
At the beginning of September, JD price broke down the crucial support of $32.00. It triggers the negative sentiment and invites further downfall.
The short-term pullback rallies are short covering due to that it loses the momentum on the higher levels. The recent downfall in the stock looks scary and gives signs of some serious issues in the business.
If one looks at the company financials then the revenue growth is slow but the net profit is too low as compared to sales. It may be one of the reasons why investors think JD.Com stock might underperform in the coming future.
JD Stock Price is in the Last Stage of Downfall?
JD price is in the bears’ grip and short sellers are using the pullbacks to build fresh shorts. The brokerage houses and several banks had cut the Q3 growth target. Due to this, the stock price tumbled about 8% on the last day and closed the session at $27.83.
At present, the stock price looks bearish and the pre-open tick shows another 4% cut is possible in the coming session. The technical analysis suggests that JD stock price is in a strong downtrend so more sell-off is pending.
JD.Com Stock Price Look Oversold
JD.Com stock price formed a bearish pattern on multiple time frames chart. It fell for 11 consecutive weeks and eroded the wealth of long-term investors.
JD share price is highly oversold but buyers look reluctant to build long positions. So, the chances of a sudden upmove or a V-share recovery remain low. The technical indicators like MACD, supertrend, moving averages, RSI, etc. are indicating bearish momentum might continue in the coming months.
Conclusion
JD stock price tumbled 8% in the previous session. Moreover, the pre-open tick shows another 4% cut and a gap open is possible. The technical analysis suggests JD.Com stock price is in a strong downtrend and more downside is possible.
Technical Levels
- Resistance levels: $30.85 and $34.91
- Support levels: $25.00 and $22.50
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/10/13/jd-stock-price-tumbled-8-what-might-be-the-next-move/