013A trade ideas
Playing the Stoch'sA lot of fundamentals changed with JD recently but playing the Stochastic RSI before the news would've been very profitable.
Bull Div in the blue gave a nice relief bounce until the Hidden Bear Div stopped the party.
IMO the aggression of the sell off (from a price perspective) once the news about Liu hit, suggests momentum was already subsiding.
I'll be knife catching this one soon when the turbulence dies down a little. All in at $22.
JD.com trading at a blatant valuation discount- LONGOne of the trends taking place in my portfolio is an increased weighting in China's technology sector.
Amid the trade-driven pessimism over China, clamp down on digital assets and increased control over online content China's economy is trading at a blatant valuation discount to the U.S.
Within the last few months the BAT stocks Baidu BIDU, Alibaba BABA and Tencent TCEHY have been among the biggest losers.
The recent arrest of JD CEO Richard Liu has caused JD stocks to tumble further relative to its e-commerce peers and is now almost 50% off its 52-week high. I view this as a risk-reward profile that is heavily tilted in favor of the bull.
All indicators explained on the graph.
JD technical analysis*** THIS IS NOT AN ADVICE, DO YOUR RESEARCH AND TRADE WITH YOUR OWN RESPONSIBILITY***
Fundamentally, Apart from what people think about the CEO's criminal charges, contrarian thinking, that changes nothing in terms of business structure, fundamentally ly JD.com still is the second largest shopping website.
Now, let's look at the chart, the H&S pattern is fulfilled with huge volume climax, the short will close their trade soon and buyers will come in , a level like this is where bulls and bears agree with each other and that will push the price higher, 88% of the time.
Volume profile gives us a good lead on where to take profit.
*** THIS IS NOT AN ADVICE, DO YOUR RESEARCH AND TRADE WITH YOUR OWN RESPONSIBILITY***
JD Long Term Supply and Demand AnalysisPrice has reached 3M demand on JD, triggered long here on the MN.
This is a long term investment for me so I purchased the stock, will also be looking for an options trade if we start to see bullish moves on the WK chart.
Price is way too low to think about shorts, longs only!
JD Bullish TriangleJD gapped down on bad CEO news and recovered a little bit today. Its been beat down pretty bad over the past couple months from 45 in mid June. We were approaching another big Daily support at ~25.30 but failed to reach it. Today we ended up making a decent triangle here with a significant price level 27.60 coming into play frequently the past couple days. What I would like to see, along with some market strength, is a move that can hold above this level and look to enter on a successful retest of the TL or 27.60. We did see some heavy selling into the close and another afterhours retest of the bottom trendline. Will have to see how the open plays out tomorrow.
JD.COM in trouble if you care about head and Shoulders
For me JD.com will be a nice furture investment to battle Alibaba and Amazon, but by now they just don't make any profits and the chart tells the same story.
Buying opportunity at around 20 $ for a long run up.
Just my opinion so make your own research
and like always
May the markets be with us
Repeating Patterndo u see the small HS and big HS?
The small one actually did not work out in the end as HS should break downwards.
Now how about the bigger one? Will it break downwards? Chinese stocks in US market and hongkong market are bearish recently.
It looks not good. Tomorrow is the earning day. wait the trigger.
JD.com, will the past repeat itself. I believe $JD is good for a bounce here with a target up to near the 50 week MA(blue). As you can see in the chart, JD has had a head & shoulders neckline break very similar to one in the past. In both instances the 7, 8, and 9 candles are trending upward. Presently, this week's candle is right on the 200 week MA (yellow). Using TD_sequential, we should see a 1-4 candle correction.
I think we see this correction begin next week. As of today it looks as if a diamond bottom is forming on the daily. Also, today had a bullish cross of the macd on the daily.
I am long 31.98 average.
JB: Head and Shoulders formation in progress -10%JD is forming the right shoulder of a long term head and shoulders formation; Aug'17 left shoulder and Jan'18 head. Downside target to neckline is $34, -10%. ABCD completion from the Jan'18 peak will imply a downside target of $29, -24%.
Options Trading Series (LEAPS – BABA + JD) BABA and JD are two of China's largest and fastest growing e-commerce companies. Due to trade war fears, Chinese stocks have been under heavy selling pressure lately. BABA is down ~20% from its ATH and JD is down ~40%.
On the other hand, both companies are producing outstanding financial results and investing in the future (i.e. Google + WMT announced partnerships with JD; and SBUX + KO announced partnerships with BABA).
In terms of growth, just as an example, BABA's revenue in the March quarter grew 61% YoY; cloud computing revenue grew 103%. JD’s revenue grew by 33% YoY; active customer accounts were up 28% YoY, etc. It's not easy to find companies of this size growing at such an impressive speed. Obviously BABA is a standout, but JD is actually differentiated in many ways – most importantly are the quality of products on the website and the buildout of the logistic network; I think JD wins there (JD, over BABA, is often compared to AMZN in the early days – I think JD is far ahead than where AMZN was at this stage of being a public company).
Technical perspective: both names are very oversold.
BABA – as you can see shares have traded sideways for about a year: ~$163-$165 has severed as a floor of support. The last time RSI touched 30 was in Dec-17. Shares ran up from $165 and hit $205 before selling off (24% move). I think the stock is set up nicely for another run-up.
JD - this stock has been a bit of a rollercoaster, hitting at a high of $50 with $35 serving as a floor of support -- which has just broken. The last time RSI hit ~25 was back in April 2018 when shares went from ~$35 to $45 before reversing course (28% move). While I do think there's more risk to this name, I think this stock is also nicely set up for a rebound.
Given the level of risk I see with these China names and not knowing how long the trade war fears will play out / uncertain to the extent of the impact at this point, I decided to do LEAPs in both names. What I will do is trade shorter dated options (both calls/puts) around these “core” positions.
Action: This morning I open both trades:
JD - 1/17/2020 $37 Calls (JD reports tomorrow morning).
BABA – 6/21/19 $180 Calls. (reports next week).
I think trade war fears are overblown and these company very well-positioned for the future. I'd be a buyer here and on any future weakness.
I will post update periodically.
Cheers!
JD Next Targets - CALLs Flow -Despite obvious HnS, I see next pivot targets @
- 33.55
- 34.94
- 35.71
JD thoughtsI feel this company has a good future and agree with their focus on expanding their logistics to bring better services to their clients. Without a good logistics group the system will fall apart. I would be looking for a similar pattern of a double bottom it had from April to Early June. Could last a bit longer this time as earnings are set for sometime in November.
JD.com - The sky is not fallingThe image of several charts related to China's companies has turned quite ugly lately.
I was reading some articles concerning China, JD.com and looking also at Investors' comments as to several China stocks.
Although equity markets became cloudy lately, looking at JD.com I do not see the sky falling.
According to my calculations we had the first phase of uptrend (in 5 Waves) and we are now at the final stages of the move down (in 3 Waves).
As soon as C ends - we are not far away from that level - I believe that JD.com will start a new and very important phase of uptrend.
I have as target $60+ for this phase, then a 4th down and a 5th phase up which will be higher (I did not have enough space to place it).
But for now let's focus at the end of II with the C and then there will be time to discuss the $60+ target.
The C will most probably end just above or at the yellow rectangle.
Once there is confirmation of the new phase up, I will update the analysis.
What to do: the simple way is to gradually accumulate stocks of JD.com, a really excellent company.
Now that there is fear for China stocks, the period seems interesting.
Another possibility that I am thinking, is to start picking as of today some Call options Val. Dec 2018, Strike price $33 ($2.30 at this moment)
be “Fearful when others are greedy and greedy when others are fearful.” as the Great WB once said.
JD.COM I'M LOOKING FOR THE END OF WAVE 2This stock seem simple with the wave. It is in my watch list because I'm looking for the end of wave 2. In my opinion is not so far. Probably will be between 35,10 and 31,50 near on the Fibonacci retracements and the SMA 100 and 200 weekly. I'm in!
JD - JD.comEarnings coming up soon and I like JD overall. Low part of the range after a great 2017.
I went with a synthetic covered call, selling the Aug17 $39 put for $1.90 cr. This trade is around a 5% cash ROC within the next 35 days.
I'll go for 50% W or continue rolling this position out, collecting credit through time.
JD: Wave 2 is done. Wave 3 target $81++A very deep wave 2 correction. The trade war rumors didn't help.
JD: Giant H&S???I am seeing what i think is a giant H&S, i am still new at this so it may not be a real one or it may be negated already. But still following the price action. Any thoughts or input on drawing this pattern more accurately???
JD
