JD.Com stock looks ready to attempt another rally
China-based e-commerce name JD.Com Inc (NASDAQ:JD) is down 0.2% to trade at $59.72 at last check. While the stock has struggled over the past 12 months, shedding 15.2%, JD bounced off its 2022 low of $33.19 before running into long-term resistance at the $68 level. The shares now look ready to attempt another rally, with support from the $58 region, after pulling back to a historically bullish trendline that has boosted the equity in the past.
Digging deeper,
JD.Com stock has pulled back to within one standard deviation of its 50-day moving average.
Per Schaeffer's Senior Quantitative Analyst Rocky White's most recent study, JD saw seven similar signals over the last three years, and was higher one month later 86% of the time, averaging a 4.4% rise. A comparable move from its current perch would place the security back above $62.
Options traders are already overwhelmingly bullish toward JD. Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 3.92 ranks higher than all readings from the past year, indicating calls have been getting picked up at a much quicker-than-usual clip.
Options are a good way to bet on JD.com stock's next moves. This per its Schaeffer's Volatility Index (SVI) of 50%, which sits in the low 7th percentile of readings from the past year. In other words, options traders are pricing in low volatility expectations.