Vipshop Holdings Limited, through its subsidiaries, operates as an
online discount retailer for various brands in the People’s Republic of
China. It offers a range of branded products, including apparel for
women, men, and children; fashion goods; cosmetics; home goods and other
lifestyle products; footwear; sportswear and sporting goods; luxury
goods; and gifts and miscellaneous products. The company provides its
branded products through its vipshop.com and vip.com websites, as well
as its cellular phone application. Vipshop Holdings Limited was founded
in 2008 and is headquartered in Guangzhou, the People’s Republic of
China.
To review Vipshop’s stock, please take a look at the 1-year chart of
VIPS (Vipshop Holdings Limited) below with my added notations:
VIPS had been trading sideways from the end of March until the
beginning of May. Over that period of time the stock had formed a clear
resistance level at $160 (blue) and a strong level of support at $130
(green). At some point the stock had to break one of those two levels
created by the rectangle pattern, and in mid-May the stock broke
resistance. The stock should continue moving higher from here.
The Tale of the Tape: VIPS had a level of resistance
at $160 and the stock broke that resistance. The ideal long opportunity
would be on a pullback down to or near that previous $160 level. On the
other hand, one would want to enter a short position on a break back
below that level.
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