VIPS | This moment will probably define the rest of Jan
Updated
VIPS 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*)
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*)
Note
Jeez that was a strong bounce up. This is going to ATHs by the end of January
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