We have not visited the charts of Baozun Inc. (BZUN) since early August, concluding back then that, "Volume has expanded with the uptrend, which is bullish, and while some may consider BZUN extended in the short run this might only translate into a sideways market because of the bullish weekly indicators. I would look for a sideways market around $32 before BZUN tries the upside again."
Looking back at the charts of BZUN this morning we can see (chart, below) that prices moved sideways from August through February. In early March BZUN gapped to the upside. A fresh look at the charts is in order.
In this daily bar chart of BZUN, below, we can see a longer-term uptrend from last April and the new highs made last month refreshed the uptrend. Prices are above the rising 50-day moving average line and the rising 200-day line.
The daily On-Balance-Volume (OBV) line has largely moved sideways since September but it is also close to making a new high for the move up. A new high for the OBV line would help confirm the uptrend.
The daily Moving Average Convergence Divergence (MACD) oscillator has crossed to the downside for a take profits sell signal. A rally in BZUN could turn the oscillator bullish again.
In this weekly bar chart of BZUN, below, we can see that prices are above the rising 40-week moving average line. Since November dips towards the 40-week line have been buying opportunities. The weekly OBV line has been rising since last May and tells a more bullish story than the daily OBV line.
The weekly MACD oscillator is in a bullish configuration above the zero line - more positive than the daily set-up.
In this Point and Figure chart of BZUN, below, we can see a minor downside price target of $38 being projected. Notice the strong support (big price at volume bars on the left) below the market. A rally to $48 would turn the trend up again.
Bottom line: BZUN has good chart support beginning around $40 and part of the price gap in early March has been filled. Aggressive traders could go long BZUN on strength above $47, $48 and $50. Risk a close below $38 for now.