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Why Has JD.com’s Stock Price Been Witnessing an Uptrend?

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JD.com narrowed losses

Shares of the Chinese e-commerce giant JD.com (JD) started witnessing an uptrend soon after the company came up with stronger-than-expected quarterly results. The company’s top line is growing at a healthy rate, though its pace of growth has slowed. What’s encouraging is its improved bottom-line performance, after the company narrowed its losses and topped the analyst estimate for adjusted earnings.

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Analyst recommendations

Of the 35 analysts covering JD.com, 26 have issued “buy” recommendations, eight have issued “hold” recommendations, and one has given it a “sell.” The analyst stock price target for JD.com is $30.19, with a median target estimate of $30.00, which means that the shares of the company are trading at a discount of nearly 13.5% to the median target.

Moving averages

On August 23, JD.com’s last trading price was $25.94. The company’s stock was trading 10.5% above its 20-day moving average of $23.48, 17.2% above its 50-day moving average of $22.14, and 10.1% above its 100-day moving average of $23.57. 

MACD and RSI

A stock’s MACD (moving average convergence divergence) is the difference between its short-term and long-term moving averages. JD.com’s 14-day MACD of 0.79 shows an upward trading trend, as the figure is positive.

JD.com’s 14-day RSI (relative strength index) is 74, which shows that the stock is overbought. Remember, an RSI figure of above 70 indicates that a stock has been overbought, whereas RSI figure of below 30 suggests that a stock has been oversold.

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