VIPS trade ideas
$VIPS with a slight bullish outlook after earnings #StocksThe PEAD projected a slight bullish outlook for $VIPS after a positive over reaction following its earnings release placing the stock in drift B
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VIPS with a double upgrade by MS, PT of $33By Morgan Stanley:
Growth of online apparel sales accelerated in 4Q20, and we project such trend to sustain thanks to consumption spending shifting to discretionary products.
We expect VIPS to sustain strong active user growth momentum, thanks to its improving user engagement amid more brand partners, effective marketing, and integrated online and offline solutions.
Potential regulatory risk from the ongoing anti-trust investigation is still overhanging, but we see limited impact for now.
Our PT of US$33 implies 19x 2021e P/E, which is not demanding, given our projected 24% earnings CAGR in 2020-23e, vs. the average 2021e P/E at >20x for global peers with only single-digit earnings growth.
Bull Case: $50/share
VIPS | This moment will probably define the rest of JanVIPS has been on an absolute tear since March lows, even more so since its Earnings dip in late October, and has followed a strong uptrend support (orange trend line) since mid November to date.
The stock failed to test its ATHs (which dates back to April 2015, fyi), dropping steeply back and now beneath the multi-month uptrend support.
This is worrying for a few reasons:
- We are sitting on first support range ~$26 in premarket trading
- Next support range is around $24, after that it's a free-fall down to about $20
However, a few considerations why I am not panic selling just yet:
1. This 7% premarket dump doesn't seem to have much news guiding it, and rather just looks like a relief dump from bag holders who have been eagerly waiting for this moment since 2015;
2. If we were to drop to ~$24, RSI would be sporting a strong Oversold
3. I am giving VIPS the rest of today to regain that uptrend support - if it succeeds, that would be a HUGE sign of strength in the stock for a retest of ATHs in the coming weeks. I would add to my position significantly in this case.
Any thoughts?
Thanks and Happy Trading!
(*This is not financial advice, for sake of discussion and illustrative purposes only*)
VIPS enters Downtrend as Momentum drops below 0 level on09/19/20This indicator may be signaling that VIPS's price has further to drop, since it fell below its price logged 14 days ago. Traders may consider selling the stock, shorting the stock, or exploring put options. Tickeron A.I.dvisor backtested 71 similar cases where VIPS's Momentum Indicator fell below the 0 level, and 57 of them led to a successful outcome. Odds of Success: 80%. Current price $17.05 crossed the resistance line at $16.95 and is trading between $17.59 resistance and $16.95 resistance lines. Throughout the month of 08/18/20 - 09/18/20, the price experienced a -30% Downtrend, while the week of 09/11/20 - 09/18/20 shows a +2% Uptrend.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 18, 2020. You may want to consider selling the stock, shorting the stock, or exploring put options on VIPS as a result. Tickeron AI detected that in 57 of 71 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 80%.
VIPS moved below its 50-day Moving Average on August 19, 2020 date and that indicates a change from an upward trend to a downward trend.
The 10-day Moving Average for VIPS crossed bearishly below the 50-day moving average on August 24, 2020. This indicates that the trend has shifted lower and could be considered a sell signal. Tickeron AI detected that in 9 of 12 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 75%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where Apple declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
VIPS: Potential Return to $24, Eventually?This stock has been beaten up over the past several days. It's bouncing off the 200 SMA within overall bullish context. It also appears to be forming an ascending triangle (reversal pattern?), and hoping we can fill previous gaps. A bit conservative with the entry/stop loss given the recent market volatility. Fingers crossed...