VIPS low-risk buy, high reward potentialThis is a short term play that, if all goes well, could turn into a long-term play.
NYSE:VIPS is currently at the bottom of a micro uptrend channel (orange lines), looking to test the two major trend bear trend lines on the 4hr and Daily.
I'm using a low risk entry on the bottom of the channel with a stop under the low of today which would be a confirmation of an exit of the channel.
I'm using a profit target based on stock remaining in the channel and resistance at the Daily trend line (solid light blue line).
There will most likely be resistance at the 4hr trend line (light blue dotted line) but a break of that trend line should give enough momentum to test the major Daily trend line.
Move up stops under new lows that remain along the bottom of the upward channel, let the trade continue if it's a winner but take the profits if the channel fails.
This is a 15 minute chart.
This is a step back on the larger time frame, the Daily, to show the major trend lines that could serve as major breakouts if broken, especially if they are retested once broken and hold to show confirmation.
On the weekly chart, there is trend angle play dating back to 2012 (red line) that could come into play. If it does get broken, retested and held with confirmation, then VIPS is looking at a long term major reversal to the upside.
This is a long shot but the potential is there if the 6 year red trend line comes back into play.
But let's stick with the original game plan on the micro trend channel on the 15 min chart and if it keeps going, great.
Remember, risk management is key!
Tomorrow is another day!
Good luck!
