JD just pulled back to a historically bearish signal on the charts
China-based e-commerce stock JD.com Inc (NASDAQ:JD) is looking to snap a three-day win streak, down 2.6% at $26.68 at last glance. This breather could continue too, as JD’s recent pop has it near a trendline with historically bearish implications. Since the start of the year the equity has underperformed, now sporting a 52.4% loss.
According to Schaeffer’s Senior Quantitative Analyst Rocky White, JD has come within one standard deviation of its 80-day moving average for the sixth time in the last three years. Following the previous signals, the stock was lower one month later 60% of the time, averaging a 6.5% loss.
When speculating on JD.com stock, now looks like a good time to weigh in with puts. The security’s Schaeffer’s Volatility Index (SVI) of 40% ranks in the low 13th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.
