Viomi Technology [NASDAQ: VIOT]: Home technologies company, Viomi Technology is in the green today. At the time of writing, it is up by 2.21%. From a look at the charts, Viomi is entering into a short-term bullish trend. After hitting an intra-day low on the chart yesterday (5/13/19) at $9.01 per share, VIOT has seemed to hold that support level today and has only traded as low as $9.10. Today, VIOT has been on a bit of an uptrend since bouncing off its support of yesterdays low, pushing above key resistance on the 200-day MA at $9.10. Nonetheless, from a look at the longer term charts such as the 1-month chart, VIOT still appears to be in bear territory. Whether its bullish trend in the day signifies a trend reversal will depend on its price action in coming weeks. If VIOT pushes above the 100-day MA on the monthly charts at $9.98, it would be a confirmation that bulls could be taking over. Such a move could have a possible target of $11.61 on the 1-month 50-day MA.
There are several factors that could play a role in aiding VIOT’s trend reversal. One of them would be a deal between the U.S and China. The ongoing trade war between the U.S and China has hit tech companies hard, and that includes companies like VIOT. However, this could change soon. President Trump has hinted at the possibility of a deal with China. This has uplifted the markets today, after trading in the red yesterday, following China’s retaliatory measures in the ongoing standoff with the U.S. That’s a strong indicator that if the two nations agree on a deal, stocks could gain upside momentum again. This geopolitical factor could play a role in helping sustain VIOT’s bullish trend.
That’s because, the company’s internal fundamentals are quite strong. For instance, the company’s sales have been getting stronger over time. In reporting Q4 results, the company revealed that year-over-year sales grew by 143% to $139 million. The company’s customer numbers have also been on the rise. In its Q4 earnings report, the company also revealed that it had appliances in at least 1.7 million homes. These numbers have been on the rise since 2017, and are indicative of growing demand. As such, if the company’s results for Q1 2019, which will be announced on the 23rd of May, come out positive, VIOT could experience a surge in value. That is if past announcements are anything to go by. When the company announced its Q4 results, and they beat analysts’ expectations, it shot up by 15.1%.
Based on all these fundamentals, it is not surprising that analysts hold such a positive outlook for VIOT. The consensus that analysts hold for this stock is that it is a very strong buy. Late last year, Morgan Stanley initiate the upgrade of this stock to overweight. It’s a strong indicator that Wall Street believes in the fundamentals of this stock, and its potential to give significant returns in the future. As technologies like 5G get more entrenched in society, VIOT could see an expansion in market size, and a growth in revenues.