BZUN pops to highest close since July 10th
Baozun Inc. (BZUN) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 8th day in a row, BZUN ended Wednesday at 43.45 gaining $0.43 (1.0%) on low volume, slightly outperforming the S&P 500 (0.64%). Today's close at 43.45 marks the highest recorded closing price since July 10th. Closing above Tuesday's high at 43.31, the stock confirmed its breakout through the prior session high after trading up to $0.69 above it intraday.
Daily Candlestick Chart (BZUN as at Aug 05, 2020):
Wednesday's trading range has been $1.38 (3.21%), that's slightly below the last trading month's daily average range of $1.71. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for BZUN.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern. The last time a Last Engulfing Top Pattern showed up on July 30th, BZUN actually gained 3.80% on the following trading day.
After having been unable to move lower than 42.44 in the previous session, Baozun found buyers again around the same price level today at 42.62.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "8 Consecutive Higher Closes" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Baozun. Out of 4 times, BZUN closed lower 75.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 50.00% with an average market move of -1.09%.