Baozun Earnings Run

Baozun Logo

The potential for a Baozun earnings run is in focus, as the stock prepares to release it’s results for the current quarter. If BABA’s results are any indication, this Chinese ecommerce company should repeat it’s string of earnings beats.

Baozun Earnings Run

Technically, BZUN is trending higher, while consolidaintg recent gains over the past 6 weeks. Price action in pre-market trading suggests a test of the 9/20ema this morning, with BZUN hovering at 32.50 (+/-). MACD should start turning soon, as stochastic leads the change in momentum over the past few days.

BZUN-11-02-2017

Volume tapered off over the past few days, as price held at its lower trend line. An increase in volume and a push back above the 20ema is anticipated.

Futures are green to slightly flat this morning. Apple EPS after the close. We’ll consider profits in BABA, and AABA this morning, in addition to FB.

We will consider scalps and a short -term swing, if pre-market price action holds. Use the ToD setup to monitor entry, stops and exits.

Baozun – Second Quarter 2017 Financial Highlights

  • Total net revenues were RMB888.3 million (US$1 131.0 million), an increase of 26.9% year-over-year.
  • Net income attributable to Baozun ordinary shareholders was RMB29.8 million (US$4.4 million), a significant increase from RMB1.5 million in the same quarter of last year.
  • Non-GAAP net income attributable to Baozun ordinary shareholders2 was RMB42.9 million (US$6.3 million), an increase of 421.9% year-over-year.

We anticipate Baozun will beat earnings estimates again. That said, price action will confirm if our assumptions are correct over the next couple of days.

Please note I will be out of the office this afternoon, from 12:00PM to the close,  attending to personal matters.

Happy Trading,

Vinny



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Vinny Gambini

Trade Fundamentals w/ Technical Analysis - CANSLIM method using high probability setups and Ichimoku Trend Analysis. Architect, Family Man and Father of three.