Vipshop stock has been consolidating while the large players volume has been rising. This positive divergence is why I went long Vipshop stock this morning.
Vipshop has lost market-share to Alibaba and JD.com but its last earnings report wasn’t that bad.
Vipshop’s total net revenue increased by 30.3% to RMB17.52 billion (US$2.58 billion) for Q2 2017 compared with net revenue of RMB13.44 billion in Q2 2016, primarily driven by the growth in the number of total active customers, repeat customers, and total orders. The Company’s revenue number fell short of analysts’ estimates of $2.60 billion.
Vipshop’s number of active customers for Q2 2017 increased by 22% to 28.1 million YOY. The Company’s total active customers for the trailing twelve months ended June 30, 2017, reached 58.8 million, representing a 32% YOY increase. For Q2 2017, Vipshop’s total orders had increased by 23% to 84.8 million YOY.
Vipshop’s current forward P/E of 10.4 times 2018 earnings could make the company a potential acquisition target.
VIPS has a good setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at $9.13, a stop order could be placed below this zone. We notice that large players showed an interest for VIPS in the last couple of days, which is a good sign.
Vulcan Materials stock has formed a Symmetrical Triangle on a possible earnings beat when they report on August 1, 2017. I like the chart setup enough to go long this stock in my personal trading account.
Vulcan Materials News
Kiplinger’s Personal Finance called Vulcan Materials the best stock in Alabama (here). Kiplinger writes:
Vulcan is trading near an all-time high thanks to a run-up in the stocks of building-materials companies following the presidential election. And if the current administration goes forward with its plan to spend $1 trillion to revamp the nation’s infrastructure, few companies stand to benefit more than Vulcan.
Vulcan Materials Stock Chart
VMC shows a beautiful positive divergence between the Effective Volume study of large players volume and the price chart. The Twiggs Money Flow does not support the large players volume but does appear to be rounding up.
Prices have been consolidating lately and the volatility has been reduced. The chart is very close to forming a momentum squeeze setup.
The TSI has given a beautiful buy signal on a bullish cross.
There is a support zone below the current price at $126.44, a stop order could be placed below this zone.
The chart looks like a good setup as we head into the August 1, 2017 earnings report which is likely to beat IMO. This is a short-term swing long trade with a sell either before, or the day after, earnings.
What do you think about Vulcan Materials stock? Leave your comment below.