Swing Trade Idea (JD) – July 22, 2021
Our bullish trade for Thursday, July 22nd is JD.Com (JD). JD is part of the Discretionary Sector (XLY). XLY has experienced a 4.4% gain as price starts to rebound after pulling back to the 100 D MA.
JD is showing signs of capitulation at current levels as price continues to make higher highs but remains in a consolidation phase which could result in a bullish breakout. With a technical score of 2 (out of 10), JD is a very weak stock that will likely move higher.
As a close, if JD were to trade below $70 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would cutting losses on this options trade if the value of the vertical spread moves below $1.55.
