JD Stock Plunges 9.2% Below Key Moving Average As Bearish Signals Intensify

Candlestick Theory
JD's recent price action exhibits a bearish continuation pattern, with three consecutive declining sessions culminating in a June 20 close at $31.46—near the session low of $31.36. The breakdown below the critical support zone of $31.55–$32.50 (established during the May 28–29 troughs) confirms bearish momentum. This level now becomes resistance, while the next significant support aligns with the May 23 low of $33.10. The formation of long upper wicks on June 16–17 signals rejection at the $33.50–$33.90 resistance band, reinforcing selling pressure.
Moving Average Theory
Short-term moving averages underscore persistent bearishness. The 50-day MA (approximately $34.20) recently crossed below the 100-day MA (near $35.00), forming a "death cross" indicative of entrenched medium-term downtrend dynamics. JD's current price trades 9.2% below the 50-day MA, reflecting weak momentum. The absence of a 200-day MA (due to limited data) prevents full cross-verification, but the shorter-term MA configuration signals sustained downward pressure.
MACD & KDJ Indicators
The MACD histogram resides in negative territory, with the signal line hovering above the MACD line—a configuration consistent with ongoing bearish momentum. Concurrently, the KDJ oscillator shows the %K line (16) and %D line (20) both in oversold territory, though without bullish crossover confirmation. While KDJ’s extreme readings hint at potential exhaustion, the absence of divergence relative to price suggests no immediate reversal signal.
Bollinger Bands
Bollinger Band width expanded by 18% during the June 18–20 selloff, reflecting surging volatility. Price closed near the lower band ($31.20), indicating oversold conditions. However, the absence of a bullish reversal candle or volume spike warrants caution. Band contraction preceding the breakdown (June 9–16) highlights the textbook "Bollinger Squeeze" pattern, where diminished volatility typically precedes directional momentum.
Volume-Price Relationship
Volume patterns validate bearish sentiment. The June 20 decline occurred on 13.5M shares—36% above the 30-day average—confirming strong conviction behind the breakdown. Lower volume during the June 16–17 rally (7.9–9.9M shares) versus the subsequent high-volume decline demonstrates weak buying interest and sustainable selling pressure.
Relative Strength Index (RSI)
The 14-day RSI reads 28, technically oversold. However, this alone provides limited reversal assurance, as RSI can remain oversold during strong downtrends. Notably, it aligns with KDJ’s oversold signal, creating indicator confluence. Traders should monitor for bullish divergence or a move above 30 to signal weakening downward momentum.
Fibonacci Retracement
Applying Fibonacci to the April 11 high ($36.42) and June 20 low ($31.36) reveals immediate support at the 138.2% extension ($30.80). A sustained breakdown exposes the 161.8% level ($29.65). Resistance clusters at the 61.8% retracement ($34.60) and 50% level ($33.90), aligning with prior consolidation zones. Confluence exists at $32.90, where the 23.6% Fibonacci level converges with the May 28 low.
Confluence & Divergence Synthesis
Confluence is strongest in oversold signals (RSI 28, KDJ 16–20, and Bollinger Band touch) and volume-confirmed breakdowns below $32.50. Divergence is observed in KDJ’s oversold reading against MACD’s unwavering bearish momentum—cautioning against premature reversal assumptions. The Fibonacci support at $30.80 and moving average resistance near $34.20 create critical technical thresholds. Probabilistically, evidence favors continued bearish bias absent a decisive close above $32.50 with supportive volume.