JD Stock Extends Slide With 6.90% Three-Day Drop On Heavy Volume

JD declined 2.92% in the most recent session to close at $32.94, marking its third consecutive daily loss with a cumulative 6.90% decline during this period. This selloff occurred on above-average volume of 20.5 million shares, reinforcing the bearish momentum observed since the September 19th peak at $36.06.
Candlestick Theory
Recent price action formed three consecutive bearish candles with lower highs and lower lows, confirming a short-term downtrend. The September 19th session established a key resistance level at $36.06 (long upper wick), while the breakdown below $34.15 on September 22nd turned this level into resistance. Critical support emerges at $32.92 (September 23rd low), which aligns with the June swing low. A close below this level may trigger accelerated selling toward the $31.50 support zone.
Moving Average Theory
The 50-day MA ($33.85) recently crossed below the 100-day MA ($34.20), generating a death cross signal. Both remain above the rising 200-day MA ($33.10), maintaining the long-term uptrend. However, with the price currently trading below all three moving averages at $32.94, near-term bearish pressure dominates. The 200-day MA should provide initial support, while any recovery would face resistance confluence at the 50/100-day MAs.
MACD & KDJ Indicators
The MACD histogram shows increasing negative momentum, with the signal line maintaining a bearish crossover below zero. Concurrently, the KDJ oscillator exhibits an oversold condition (K=18, D=22, J=10), though both indicators lack bullish divergence. This configuration suggests persistent downward pressure, but the extreme KDJ reading warns of potential technical rebounds near key support zones.
Bollinger Bands
Price breached the lower Bollinger Band ($33.40) during the September selloff as volatility expanded. The bandwidth increase from 2.5% to 4.2% over three sessions confirms strong directional momentum. With price now hovering near the lower band, mean reversion toward the $34.00 midline is possible, though continued band expansion would signal sustained bearish control.
Volume-Price Relationship
Distribution patterns emerged during the decline, with the September 19th down candle occurring on the highest volume (28.9M shares) since May. The subsequent two down days maintained above-average volume, confirming institutional selling. Weak volume during August rallies (averaging 7M shares versus recent 21M) further validates the bearish volume signature. Any recovery attempt requires volume expansion to demonstrate conviction.
Relative Strength Index (RSI)
The 14-day RSI (34.6) approaches oversold territory but remains above the January low of 28.3. While the current reading may precede technical bounces, it has not yet reached the <30 zone that historically triggered reversals. Bearish momentum dominance is evident through the RSI's lower highs since August, coinciding with price's lower highs.
Fibonacci Retracement
Applying Fibonacci levels to the May-June decline (high: $34.82 → low: $30.93), the 38.2% retracement ($32.38) aligned with June's swing low. Current prices test this level with recent closes at $32.94. A breakdown would expose the 50% retracement ($31.38) and June's $30.93 low. Significant resistance now converges between $34.15 (recent breakdown) and the 61.8% retracement ($34.43).
Confluence & Divergence
Strong confluence exists at the $32.90-$33.00 zone, combining the 200-day MA, Fibonacci 38.2% level, and September 23rd low. Bearish divergence is observed between the RSI's higher July low versus price's lower low, though this requires confirmation. The MACD/KDJ agreement on negative momentum tempers potential oversold signals, suggesting limited recovery potential without volume confirmation near $32.90 support.