Yahoo Finance Vipshop Holdings Limited (VIPS) Crossed Above the 20-Day Moving Average: What That Means for Investors
Vipshop Holdings Limited (VIPS) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, VIPS broke through the 20-day moving average, which suggests a short-term bullish trend.
The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.
Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.
Shares of VIPS have been moving higher over the past four weeks, up 7.7%. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock, suggesting that VIPS could be poised for a continued surge.
The bullish case solidifies once investors consider VIPS's positive earnings estimate revisions. No estimate has gone lower in the past two months for the current fiscal year, compared to 2 higher, while the consensus estimate has increased too.
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
