BZUN dominated by bulls lifting the market higher throughout the day
Baozun Inc. (BZUN) Technical Analysis Report for Jul 02, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, BZUN finished Thursday at 42.16 surging $3.39 (8.74%), notably outperforming the S&P 500 (0.45%) ahead of tomorrow's Independence Day OBS market holiday. This is the biggest single-day gain in over two weeks. Today's close at 42.16 marks the highest recorded closing price since November 20, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 39.65, the stock confirmed its breakout through the prior session high after trading up to $3.60 above it intraday.
Daily Candlestick Chart (BZUN as at Jul 02, 2020):
Thursday's trading range has been $4.01 (10.18%), that's far above the last trading month's daily average range of $1.94. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BZUN.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on June 25th, BZUN actually lost -2.48% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Baozun. Out of 165 times, BZUN closed higher 49.09% 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 58.18% with an average market move of 1.98%.