JD.com latest news: stock trades below key moving averages

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JD.com rises 0.40% to HK$124.50 today

Highlights

JD.com, Inc. (9618) trades at HK$124.50, below MA-20, MA-50, and MA-200, confirming short-, medium-, and long-term bearish trends with HK$132 as resistance.
First-quarter 2024 results showed revenue and net profit growth alongside executive changes, a new CTO, supply chain upgrades, and ongoing share buybacks.
Momentum indicators remain negative, projecting JD.com to trade between HK$121.00 and HK$128.00 over five sessions with persistent downside risk barring a close above HK$132.

Strategic pivots and buybacks as earnings growth accelerates

JD.com recently released its first-quarter 2024 financial results, reporting growth in both revenue and net profit. The company undertook executive leadership changes, naming a new chief technology officer, and launched initiatives to strengthen supply chain capabilities and expand its logistics network in China. Additionally, regulatory filings confirmed share buybacks under JD.com's ongoing repurchase program.

Seller control persists as momentum signals diverge in quiet trade

Momentum indicators on the daily timeframe show limited strength, with the MACD signaling a sell and ADX pointing to a weak or trendless market. Oversold readings from CCI and BBP, along with a low RSI, underline continued seller dominance, though the Stoch RSI suggests modest relief potential. The Awesome Oscillator supports the broader bearish trend. JD.com opened at HK$124.50, registering a slight gap above the previous close at HK$124.00, and is currently trading at the high of today's tight range, reflecting low volatility and early-session steadiness despite mixed momentum signals.

Continuation risk heightened as downside pressures override rebound odds

Over the next five sessions, JD.com is expected to trade between HK$121.00 and HK$128.00, accounting for realistic volatility. The probability of a sustained price increase remains very low, with further declines more likely as selling pressure persists according to daily and weekly indicators. The baseline scenario is for the stock to move sideways within this adjusted range. A bullish scenario would require a break and close above HK$132 resistance, whereas a decisive drop below HK$121 support would reinforce the bearish outlook.

Viktoras Karapetjanc, expert at Traders Union, sees JD.com maintaining a short- and medium-term bearish structure. The recent financial results and strategic moves in leadership and logistics are promising signs for future growth. However, current price action and momentum remain weak, limiting upside in the near term. He believes strong fundamentals could support a rebound if technical resistance at HK$132 is overcome. "I remain constructive on JD.com’s long-term outlook, but I need to see a confirmed break above HK$132 before anticipating meaningful upside."

Previously it was noted that JD.com faced elevated promotion costs due to the extension of Singles’ Day, increasing margin risks. The baseline scenario was for consolidation within a certain price corridor due to weak medium- and long-term signals.

Source of Data: 9618 Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.