zvissss

JD Sports MASSIVE consolidation but strong resistance

Long
LSE:JD.   JD SPORTS FASHION PLC ORD 0.25P
Just today, JD Sports Fashion announced it had agreed to buy California-based Shoe Palace for $325 million. JD has also just opened a new flagships store in Times Square, New York. JD shares were up 3.8% early Tuesday, making the stock the top performer in the FTSE 100 this morning.

In other news today, JD , who was the last remaining bidder for Debenhams the 242-year-old retailer, has pulled out of a potential deal after it went into administration in April this year.

JD stock has risen by almost 200% since its 19th of March low of 312p, it is now trading at 809p. There is a strong resistance zone at 825p. This zone, over the past 3 months have been tested over 18 times and the stock has failed to close above 813p. The stock spiked to 850p this morning on the positive news, but the bears have pushed the price back below the 825p threshold for now. Pre-covid, the stock closed at an all time high of 878p.

JD has been in a bullish channel since April. Its growth has been helped by a monster Q2 2020 earnings beat.

Right now, JD is at a critical level. Its price been consolidating for the best part of 3 months. Whenever the price dips, bulls buy. Whenever the price reaches the 825p zone, the bears bite back. The price is also facing some pressure from a declining trend line connecting the high of 17th Jan, to the close of 23rd November.

Should JD break this key 825p zone, maybe on strong earnings or bullish volume , the stock could see more upside.
Comment: JD. closed at 845p today, above the key 825p resistance zone. The next few days of trading will be indicative if this break higher is significant.

Comments

I love sneakers as an investment idea. I think Footlocker is one of the best longterm S&P dogs as well. JD is more on fashion trend 😎
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zvissss CeoCodes
@CeoCodes, me too, especially the rise in casual sportswear here in the UK. With JD Sports owning Size? and Footasylum in the UK, JD Sports offers good exposure to the growing sneaker market.
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