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JD.com (JD) Developing a Double Bottom at Key Support; Or it Could Just be a Consolidation Range

JD.com $JD has been bearish throughout the year after it started 2018 with a push to $50.65. In November and December, price came down to a new all-time-low around $19.20. Everything points lower, except for the past month of price action, which suggests JD has some upside at least in the short-term. 

JD Daily Chart

(click to enlarge)

Double Bottom Scenario:
- On the 4H chart above, we can see JD failing to push below $19.20 once in November and again in December, effectively creating a double bottom scenario. 
- A break above $23.35 could open up the $25.75-$26 area. 
- The resistance above is a support/resistance pivot and where the 200-period simple moving average (SMA) resides in the 4H chart.
- Furthermore, the RSI should push above at least 60, and likely above  70 in this bullish reversal attempt.
- It is too early to say whether a bullish breakout will sustain and extend into a bullish trend.
- For now, we can anticipate some bullish correction against the prevailing downtrend and no more. 

Key Support:
- On the weekly chart, we can see that price is right on top of a previously key support around $19.50-$20. 
- While price did break into new lows, it still stuck around $20 in December.
- For now, the upside should be limited to $25.75-$26. 
- If we can more evidence of a price bottom, we can expect more upside, but still should limit it to the $30 area until the general equities market becomes bullish.

JD Weekly Chart

(click to enlarge)


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