JD.com (JD) Remains supported by a bullish trend line

JD fell more than 7% after the 3Q result, where are the support and resistance levels?

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JD.com (JD), a Chinese e-commerce company, announced that 3Q adjusted net income jumped 80.1% on year to 5.6 billion yuan ($0.8 billion) on net revenue of 174.2 billion yuan ($25.7 billion), up 29.2%. Annual active customer accounts rose 32.1% to 442 million in the twelve months ended September 30. Although the 3Q result beat the estimation, the stock prices fell 7.4% to the close price at $85.26.

Besides, the stock of JD.com trading in Hong Kong Exchange will join the Hang Seng China Enterprises Index from December 7. CICC projected that there would be $66M passive capital inflow. On the other hand, the company will spin-off its JD Health to list in Hong Kong Exchange for raising $3 billion.

From a technical point of view, although the ADR stock prices of JD.com posted a pullback from $92.65, it is still supported by a rising trend line drawn from February. In addition, the ascending 20-day and 50-day moving averages are playing the support role. The relative strength index still holds above the support level at 46.

Bullish readers could set the support level at $78.00, while resistance levels would be located at $92.65 and $98.40.

Source: GAIN Capital, TradingView

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