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Vipshop Holdings Limited (VIPS) Recently Broke Out Above the 50-Day Moving Average
Vipshop Holdings Limited (VIPS - Free Report) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, VIPS broke through the 50-day moving average, which suggests a short-term bullish trend.
The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.
VIPS could be on the verge of another rally after moving 5.3% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.
The bullish case only gets stronger once investors take into account VIPS's positive earnings estimate revisions. There have been 2 higher compared to none lower for the current fiscal year, and the consensus estimate has moved up as well.
Investors should think about putting VIPS on their watchlist given the ultra-important technical indicator and positive move in earnings estimate revisions.