JD.com Hasn't Bottomed Yet

 | Feb 09, 2016 | 12:47 PM EST
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The charts and indicators on JD.com (JD) have been negative for a while, but we want to revisit the charts now that TheStreet Quant Ratings service downgraded JD.

In early January, JD broke down (see the chart above) from a rising wedge pattern we identified in previous stories. The subsequent decline wiped out all of the previous rally, but prices haven't bottomed yet. We can see that the slope of the shorter 50-day and the longer 200-day averages are pointed down. The On-Balance-Volume (OBV) line is in a downtrend, telling us that sellers of JD are more aggressive than the buyers. There is a small bullish divergence between the lower lows in price and the momentum study. The rate of decline in the price of JD has slowed, but still the trend in down. With the quantitative downgrade of JD, we remain pessimistic.

This chart of JD, above, doesn't add much more in the way of history, but it does show that there is not much at all in the way of support below $22. A weak close below $22 on JD could precipitate a deeper decline to the mid-teens.

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