JD.com, Inc. (NASDAQ:JD) surges after the China-based e-commerce company reported second-quarter earnings that beat expectations

JD.com, Inc. (NASDAQ:JD) surges after the China-based e-commerce company reported second-quarter earnings that beat expectations

JD.com, Inc. (NASDAQ:JD) surges after the China-based e-commerce company reported second-quarter earnings that beat expectations

Shares of JD.com Inc. JD, +12.89% surged 6.7% in active premarket trading Tuesday, after the China-based e-commerce company reported second-quarter earnings that beat expectations.

Trading volume topped 1.3 million shares, making the stock the most actively traded ahead of the open. The company swung to net income of RMB618.8 million ($90.14 million), or RMB0.36 a share, from a loss of RMB2.21 billion a year ago.

Excluding non-recurring items, adjusted EPS was RMB2.30, or 33 cents in U.S. dollars, which beat the average analyst estimate of 6 cents, according to FactSet. Revenue rose 22.9% to RMB150.28 billion ($21.89 billion) from RMB122.29 billion, which topped the FactSet consensus of $20.87 billion. Product revenue rose 20.8% and net service revenue grew 42.0%.

The stock has jumped 29.8% year to date through Monday, while the S&P 500SPX, +1.48% has advanced 15.0%.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 33.13.

The projected lower bound is: 28.39.

The projected closing price is: 30.76.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.8867. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.00. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 3 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 42. This is not a topping or bottoming area. The last signal was a buy 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 11 period(s) ago.

Rex Takasugi – TD Profile

JD.COM INC ADR closed up 3.500 at 30.660. Volume was 224% above average (trending) and Bollinger Bands were 83% wider than normal.

Open     High      Low     Close     Volume___
28.640 30.980 28.150 30.660 46,373,484
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27.82 29.29 26.37
Volatility: 93 53 59
Volume: 18,461,374 11,940,947 16,621,730

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

JD.COM INC ADR gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
JD.COM INC ADR is currently 16.3% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of JD.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on JD.O and have had this outlook for the last 8 periods.

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