JD Shares Extend Losses to 2.27% Amid Bearish Technical Signals

JD (JD.com) shares declined by 0.15% in the latest session, marking a second consecutive daily loss and bringing the two-day decline to 2.27%, with the stock closing at $33.62. This analysis synthesizes multiple technical indicators to evaluate the security’s near-term trajectory.
Candlestick Theory
Recent candlestick patterns reveal bearish signals. The September 11 bullish candle (close: $34.40, high: $34.46) was followed by two bearish sessions (September 12 and 15), forming a Two Black Crows pattern near the $34.46 resistance. This suggests exhaustion after the rally from the August low of $31.44. Immediate resistance is firm at $34.45–$34.50, while support converges near $33.30 (September 15 low). A decisive break below $33.30 may expose the $32.75–$32.90 consolidation zone. The pattern indicates distribution and aligns with the short-term downtrend.
Moving Average Theory
The 50-day moving average (MA) near $33.00 offers dynamic support, with the price currently trading above it. However, the 100-day MA ($33.80) and 200-day MA ($35.50) hover overhead, reflecting sustained selling pressure in the medium term. Notably, the 50-day MA remains below both longer-term averages, confirming the bearish intermediate trend. Current price action holding above the 50-day MA may suggest temporary resilience, but a close below it would signal weakening momentum.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover fading, with the histogram contracting, suggesting waning upside momentum. KDJ highlights a bearish reversal: the %K line (approximately 69) has descended sharply from overbought territory (>80) and crossed below the %D line, indicating near-term exhaustion. This divergence from the recent price peak at $34.46 warns of a potential retracement. Confluence with the candlestick pattern reinforces the risk of further downside.
Bollinger Bands
Price is testing the middle band (20-day SMA near $33.00) after rejecting the upper band ($34.60–$34.80) on September 11. Bandwidth has contracted slightly, implying reduced volatility, but the failure to sustain upper-band tests coupled with the current middle-band retest signals bearish consolidation. A close below the middle band would likely trigger a test of the lower band near $32.20, especially if volatility expands.
Volume-Price Relationship
Volume dynamics validate bearish pressure. The September 11 rally to $34.40 occurred on elevated volume (23.5 million shares), confirming bullish conviction. However, subsequent declines on September 12 (20.3 million shares) and September 15 (19.1 million shares) featured above-average turnover, signaling distribution. The absence of accumulation volume during pullbacks suggests weak buying interest and may undermine recovery attempts.
Relative Strength Index (RSI)
The 14-day RSI (approximately 60) has retreated from overbought territory (>70) and now hovers near neutrality. While not yet oversold, the downward trajectory from its September peak indicates fading bullish momentum. This corroborates the KDJ and MACD warnings, though its neutral stance tempers immediate reversal concerns. A break below 50 would strengthen the bearish case.
Fibonacci Retracement
Using the swing low of $31.44 (June 20) and high of $34.46 (September 11), key retracement levels are identified. The 38.2% level ($33.30) aligns with the September 15 intraday low, establishing critical near-term support. The 50% level ($32.95) and 61.8% level ($32.60) offer subsequent downside targets. Resistance remains at the 23.6% level ($33.75), now reinforced by the moving average cluster.
Confluence and Divergence
A significant confluence of bearish signals emerges: the Two Black Crows pattern, KDJ/MACD bearish crossovers, and volume-supported distribution align near $34.45 resistance and the $33.30 Fibonacci support. Divergence appears in Bollinger Bands, where price rejection at the upper band contrasts with the RSI’s neutral reading, suggesting indecision. Probabilistically, the weight of evidence leans bearish below $33.75, with a breach of $33.30 likely accelerating selling toward $32.60–$32.90. Recovery above $34.00 would require strong volume validation to neutralize the bearish setup.