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Vipshop Holdings Limited (VIPS) Recently Broke Out Above the 50-Day Moving Average
After reaching an important support level, Vipshop Holdings Limited (VIPS - Free Report) could be a good stock pick from a technical perspective. VIPS surpassed resistance at the 50-day moving average, suggesting 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.
Over the past four weeks, VIPS has gained 9.1%. The company is currently ranked a Zacks Rank #3 (Hold), another strong indication the stock could move even higher.
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.
With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on VIPS for more gains in the near future.