Chinese Vipshop Stock Looking for More Recovery

In today’s blog, we will have a look at the Vipshop stock. The stock is traded as VIPS at the NYSE.

Vipshop is a Chinese e-commerce company (www.VIP.vcom)  which offers online discount sales which have it’s headquarter in Guangdong, China.It was founded in 2008 which means it is a pretty young online company. Vipshop is one of the largest e-commerce sites in China. Over the last years, the stock lost 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 have a look at the daily price action and what to expect for the company.

VIPSHOP 10.13.2019 Daily Chart

Vipshop

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. Recently, the stock broke above 5/2019 peak opening up a higher high sequence. With that said, the stock has an incomplete sequence from 2018 low indicating that more upside towards 11.16-14.25.

Summarizing, the stock should see more upside in the next weeks into 11.16-14.25. Anyway, as you can see there should be strong in the next years. Of course, nothing runs in a straight line. There will be pullbacks, but those should be supported in the sequences of 3-7 or 11 swings.