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Master Buy Level On Vipshop Holdings Limited (VIPS) Revealed

Published 05/15/2018, 11:59 PM
Updated 07/09/2023, 06:31 AM
VIPS
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Shares of Chinese retailer Vipshop Holdings Limited (NYSE:VIPS) collapsed 20% on Tuesday after the company reported earnings and issued weak guidance for the coming quarter. From December 2017 to March 2018, Vipshop Holdings had gained over 100% but had seen lots of distribution selling over the last month or two. Big money knew what was coming it appears.

As a technical trader, I am expecting further selling from retail investors, driving shares of Vipshop Holdings to $8.45. The stock is currently trading just over $12.00/share. Once at $8.45, the technical chart will have filled the gap from December 2017 and become a strong bounce/buy swing trade. Technically speaking, this is the ideal entry point offering the best reward for the lowest risk.

VIPS Daily Chart

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