Yahoo Finance Vipshop Holdings Limited (VIPS) Recently Broke Out Above the 20-Day Moving Average
From a technical perspective, Vipshop Holdings Limited (VIPS) is looking like an interesting pick, as it just reached a key level of support. VIPS recently overtook the 20-day moving average, and this suggests a short-term bullish trend.
A well-liked tool among traders, the 20-day simple moving average offers a look back at a stock's price over a 20-day period. This is very beneficial to short-term traders, as it smooths out short-term price trends and gives more trend reversal signals than longer-term moving averages.
Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.
Over the past four weeks, VIPS has gained 5.3%. The company is currently ranked a Zacks Rank #1 (Strong Buy), another strong indication the stock could move even higher.
The bullish case only gets stronger once investors take into account VIPS's positive earnings estimate revisions. There have been 2 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.
Given this move in earnings estimate revisions and the positive technical factor, investors may want to keep their eye on VIPS for more gains in the near future.
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Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report
