BZUN runs into sellers again around 39.38
Baozun Inc. (BZUN) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, BZUN ended the month 45.15% higher at 38.45 after edging lower $0.02 (-0.05%) today on low volume, significantly underperforming the S&P 500 (1.54%). Trading $0.61 higher after the open, Baozun was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 18th, BZUN actually gained 6.66% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (BZUN as at Jun 30, 2020):
Tuesday's trading range has been $1.15 (2.97%), that's below the last trading month's daily average range of $1.85. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for BZUN.
Prices are trading close to the key technical support level at 37.73 (S1). After having been unable to move above 39.19 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 39.38.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 40.48 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 37.73 where further sell stops might get triggered.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near low of period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Baozun. Out of 233 times, BZUN closed higher 54.51% 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 55.79% with an average market move of 2.11%.