BZUN pushes through Wednesday's high
Baozun Inc. (BZUN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, BZUN ended Thursday at 29.10 gaining $1.31 (4.71%), strongly underperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 28.04, the market confirmed its breakout through the prior session high after trading up to $1.30 above it intraday.
Daily Candlestick Chart (BZUN as at Mar 26, 2020):
Thursday's trading range has been $2.23 (8.22%), that's slightly above the last trading month's daily average range of $2.14. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for BZUN.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 28.62 for the first time since March 6th. When this moving average was crossed above the last time on March 5th, BZUN actually lost -0.34% on the following trading day. Prices are trading close to the key technical resistance level at 29.70 (R1).
While Baozun is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Up Close near high of period" stand out. Its common bullish interpretation has been confirmed for Baozun. Out of 209 times, BZUN closed higher 53.59% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.59% with an average market move of 1.50%.