ZEPP Should I Buy
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$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
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Not a good buy right now. ZEPP just sold off sharply (-14.23% regular session) and is still in a bearish momentum regime (negative, expanding MACD). Despite being deeply oversold (RSI-6 ~16.8), the options tape is aggressively bearish (put volume dominating), and price has slipped below the near support zone—this is more consistent with a falling-knife setup than a clean dip-buy. For an impatient investor, the risk/reward favors avoiding new longs here.
Trend/momentum: Bearish. MACD histogram is -0.33 and negatively expanding, signaling downside momentum is strengthening. Overbought/oversold: RSI_6 at 16.807 is extremely oversold, so a short-term bounce is possible, but oversold readings can persist during breakdowns. Levels: Pivot 21.487 (well above price, now resistance). S1 is 18.74; current price 18.38 is already below S1, which is a bearish break. Next support is S2 17.044; that becomes the key downside magnet if selling continues. Resistance levels: 24.234 (R1) and 25.93 (R2) are far overhead. Pattern-based forward bias: Similar-pattern stats imply a 60% chance of -0.75% next day, -4.55% next week, -1.76% next month—skewing negative.
Intellectia Proprietary Trading Signals:
Technically deeply oversold (RSI-6 ~16.8), increasing odds of a reflex bounce.
2025/Q3 revenue grew strongly (+78.49% YoY).
Post-market is up ~2.00%, hinting at some dip-buying after the selloff.
Sharp breakdown day (-14.23%) with bearish momentum (MACD histogram negative and expanding).
Price fell below S1 (18.74); next meaningful support is lower (S2 17.044).
Options flow is heavily bearish (put volume dominating; put-call volume ratio 8.08).
No fresh news catalysts in the past week to explain/stop the selloff.
Profitability trends deteriorated (net income and EPS worse YoY) and gross margin declined.
Latest quarter: 2025/Q3. Growth: Revenue increased to 75.789M (+78.49% YoY), a strong top-line rebound. Profitability: Still unprofitable and worse YoY—net income -1.616M (down -87.80% YoY) and EPS -0.01 (down -80% YoY). Margins: Gross margin 38.16%, down ~6.03% YoY, indicating weaker unit economics despite higher sales.
No analyst rating/price target change data was provided, so a recent trend cannot be confirmed. Wall Street-style pros: strong YoY revenue growth; potential for mean-reversion bounce after an oversold washout. Wall Street-style cons: worsening profitability and margin compression; technically broken chart after a large selloff; options market positioning is decisively bearish, implying low confidence in an immediate recovery. Influential trading check: No recent congress trading data available; hedge fund and insider activity reported as neutral (no significant recent trends).
