JD last correction is over

21 Jun

Since fiscal stimulus announced by China, JD started to print an expanding diagonal which I labeled in black as 1-2-3-4-5. Currently, wave 4 is over (or will be over within a few days) and wave 5, the longest in such a type of diagonal, is set to unfold.

Which supportive evidence I found:

• wave 4 is formed as a double three as (w)-(x)-(y) and (y) contains and ending diagonal - see green impulsive wave down. The diagonal's wave 5 reached the lower edge.
  
• wave 4 retraced 61.8% of wave 3
  
• wave can be seen as a bullish flag - it nicely fits into the channel (I showed in green)
  
• both RSI and MACD show bullish divergence with price on daily
  

I believe JD will revert with strong impulse up in the coming days.

See divergences:

24 Jun

Dagangan aktif

I was trying to find what can go wrong and found :)

There is also an alternative waves count which assumes that deeper correction might take place. I labeled it with red. It means that the diagonal is over and correction structure of wave 2 might go beyond the level of the black count.

So accept the risk or join when trend up resumption confirmed. I will follow up on this.