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JD.com, Inc. (JD)

JD.com stock forecast: buy or sell

Close on Sep 25th, 2020
$74.67 0.03%
3 months performance
0.26%
Published: September 27th, 2020 - 18:20

JD.com stock outlook

  • JD.com closed on Friday at $74.67 after exploding a 2.68% breaking a streak of 3 sessions in green.
  • Price is drawing a scaled uptrend since last March with higher tops and higher bottoms. Up to date, the uptrend marked a 128.35% gain since the beginning of this rally
  • JD.com, Inc., through its subsidiaries, operates as an e-commerce company and retail infrastructure service provider in the People's Republic of China.

Disclaimer:
The thoughts published in this post are personal and should not be followed as recommendations for you to buy or sell shares. The author of this report does not have an understanding of the particular positions of the reader, his or her financial statements or his or her own best interests at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are published for general educational reasons only

JD.com stock charts

Should I buy JD.com stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is JD stock a buy?

In the current situation of JD.com there is not any eligible buy setup. This doesn't mean we expect a selloff for JD in coming sessions, or that it may not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell JD.com stock?

Do you know when is it time to sell JD.com?. Trading strategies let us to avoid impetuous decisions based on our sentiments or the noise that surrounds the market. Our trading system selects very simple setups to guide us on when is the best moment to sell a stock. Be aware that these setups are not intended for selling short JD stock

As a rule of thumb, you must never keep an open trade that results in higher than expected losses by the time of the buy. The timing to sell your stock always has to be determined by the stop-loss (automatic or manual)

Is it time to sell JD.com stock?

In the current situation of JD.com there is not any eligible sell setup, so JD.com stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell JD.com stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating posted in the previous 30 days for JD.com

Technical analysis

JD.com shares started an uptrend last March, and grew a gorgeous 128.35%. During this uptrend, the price gave some buy points on the breakouts. Latest pullback was in late July, when price bounced at $58.76. Like in all uptrends, price needs to take breath and now price is consolidating the gains in a range between $86.58 and $58.76

SMAs overview

A favorite tool of many trading systems are the moving averages, that easily show trend momentum. A moving average is the average price of a stock over a set period of time. Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

JD SMAs chart

Supports and resistances

Technical analysts use supports and resistances to identify price points on a chart that tend to behave as barriers, preventing the price of shares to move in certain direction. A support level is a level where the price may stop as it falls. This means that the price is more likely to "rebound" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue declining until finding another support level. On the contrary, resistance levels are where the price may find opposition as it moves up. Likewise, the price is more likely to "bounce off" at this level, and if it finally breaks this level, it will climb easily until it meets the next resistance

The current resistance levels are:

  • R1: $86.58 (15.95% above)
  • The current supports are:

  • S1: $69.18 (-7.35% below)
  • S2: $58.76 (-21.31% below)
  • S3: $50.68 (-32.13% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-known studio developed by John Bollinger. It consists of three bands that are superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    JD RSI chart

    Relative strength index

    The relative strength index (RSI) is a technical indicator used in the analysis of stock markets. Its objective is to plot the current and historical weakness or strength of a stock or market based on the closing prices of a recent trading period. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, and it was invented by J. Welles Wilder in 1978

    The RSI dropped below the overbought level of 70 on September 3 after just crossing to the overbough zone for just one day (weak signal). The RSI reading on Friday was 51.21. JD.com shares dropped a 10.26% since that level was lost

    JD RSI chart

    Earnings and financials

    JD.com had the shareholders call and posted the Q2 report in mid-August. JD.com posted second-quarter earnings of $3.51 per share on revenue of $201.1 billion. The consensus earnings estimate was $2.66 per share on revenue of $188.8 billion.

    Compared to the same quarter last year, EPS was $2.30, so current EPS means a improvement of 52.61%. Sales skyrocketed a 33.79% on an annualized basis in the second-quarter, from $150.3B to $201.1B last quarter. JD.com posted three YoY quarterly positive results, improving turnover by 1497.37% from $12.6B on 2017-Q3.

    JD.com is presenting quarterly financial report next November. Estimated earnings of %s per-share for this quarter is $0.00. Financial reporting day has an additional risk for stock traders as the information disclosed can gap up or down the stock price with very low liquidity and not respecting your buy or stop-loss orders. You can obtain more details about the earnings call and the financial reports on the Investor Relations section of its website: http://www.jd.com.

    JD revenues and profits chart