In today’s blog, we will recap the blog I did recently about the Vipshop stock. The stock is traded as VIPS at the NYSE.
In the blog, I pointed out that Vipshop should continue its recovery after the stock lost almost 77% of its value. Starting from its February 2019 peak. The stock dropped to $4.28 low which marked in October 2018. Above from there, it has been now in the progress of a larger recovery.
Let’s recap now the charts and compare them how they developed.
VIPSHOP 10.13.2019 Daily Chart
In the chart above you can see that the stock ended the cycle from 2018 peak at 2018 low. Above from there, Vipshop has been showing strength. The stock broke above the 5/2019 peak opening up a higher high sequence. With that said, the stock had an incomplete sequence from 2018 low indicating that more upside towards 11.16-14.25. So I pointed out that the recovery should ideally continue to the first area of 11.16+ area. Now let’s have a look at the latest chart.
VIPSHOP 11.4.2019 Daily Chart
In the chart above you can see that the stock ended the cycle from 2018 peak at 2018 low. Above from there, Vipshop managed to pull back from the 61.8-76.4 area and ended the 6th swing at around 8.50. Above from there, it made a fast and very nice move to the upside towards the target area of 11.16-14.25. Now, it reached the minimum and soon a pullback in 3-7 or 11 swings should take place.
Summarizing, the stock played out very nicely how I forecasted it. Of course, nothing is 100% and there will be a certain market environment it might take another route. But the right side was clear in the near-term.
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