JD Stock Plunges 3.36% to $31.6 as Key Support Breach Confirms Downtrend

JD fell 3.36% to close at 31.6 in the most recent session, breaching the psychological $32 level amid elevated trading volume of 12.9 million shares, signaling intensified selling pressure.
Candlestick Theory
The recent candle penetrated the critical support zone at $31.8-$32.0, established through multiple tests in June and early July, confirming its conversion to resistance. This breakdown follows an unsuccessful retest of the July 8 swing high ($33.18), forming a lower high-lower low pattern that reinforces the bearish structure. The next significant support emerges near the June 23 low of $31.27.
Moving Average Theory
The stock currently trades below all key moving averages, with the 50-day SMA near $33.5, the 100-day SMA at $34.8, and the 200-day SMA hovering around $36.2. The bearish sequencing – with price below the 50-day, which is itself below the 100-day and 200-day averages – confirms a structurally entrenched downtrend. Sustained trading below the 200-day SMA since early 2025 underscores persistent long-term weakness.
MACD & KDJ Indicators
MACD maintains a bearish configuration, with its signal line tracking below the zero line and histogram showing no signs of bullish convergence. Meanwhile, the KDJ oscillator (especially the %K and %D) has entered oversold territory below 30, reflecting short-term exhaustion. However, the absence of bullish divergences between these oscillators – while MACD shows consistent bearish momentum, KDJ's oversold condition lacks confirmation – suggests limited reversal potential.
Bollinger Bands
Bands are expanding after a prolonged contraction period observed from late May to mid-June, indicating increasing directional volatility. Price closed near the lower band ($31.4) during the latest session, marking the third lower-band touch in two weeks. Repeated tests of the lower band without decisive closes below it may suggest temporary oversold conditions, though the expansion phase implies continuation potential.
Volume-Price Relationship
The breakdown below $32 was validated by a 58% volume surge compared to the previous session, marking the highest volume since the June 20 selloff. Notably, distribution days have consistently shown higher volume than accumulation days over the past month, confirming bearish commitment. The volume profile also highlights $32.5-$33.0 as a high-volume resistance node where prior rallies faltered.
Relative Strength Index (RSI)
The 14-day RSI currently reads 39, hovering near the lower boundary of the neutral zone but not yet signaling a severely oversold condition. While it has avoided the sub-30 territory that might suggest capitulation, its consistent failure to breach 60 during counter-trend rallies since April reveals persistent bearish momentum. Given RSI's tendency to remain depressed in strong downtrends, this reading alone provides insufficient reversal evidence.
Fibonacci Retracement
Applying Fib levels to the February 21 peak ($42.42) and the June 23 trough ($31.27), the 38.2% retracement stands at $35.53, which recently capped the late-June recovery attempt. The current price trades below the 23.6% level ($33.94), confirming the bearish bias. A sustained break below $31.27 would open downside toward the 161.8% extension target near $28.50.
Multiple confluences strengthen the bearish outlook: price broke below key horizontal support simultaneously with expanding Bollinger Bands and high-volume confirmation. The primary divergence lies in KDJ signaling oversold conditions while MACD and RSI show unabated bearish momentum. This contrast suggests that while a technical bounce may materialize from oversold KDJ levels, the confluence of resistance at $32.0-$32.5 (candlestick resistance, volume ceiling, and 50-day SMA proximity) limits upside potential. The breach of the critical $31.8 support shifts the technical focus toward the $30.00 psychological level, with decisive closes below $31.2 potentially accelerating downward momentum.