21Vianet (VNET) Could Find a Support Soon, Here's Why You Should Buy the Stock Now

Core Viewpoint - Shares of 21Vianet (VNET) have recently declined by 5.5% over the past week, but the formation of a hammer chart pattern suggests potential support and a possible trend reversal in the future [1] Technical Analysis - The hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick suggesting that selling pressure may be exhausting [1] - This pattern typically forms during a downtrend, where the stock opens lower, makes a new low, but then closes near or above the opening price, signaling a potential loss of control by bears [1] - Hammer candles can appear on various timeframes and should be used alongside other bullish indicators for confirmation [1] Fundamental Analysis - There has been a positive trend in earnings estimate revisions for VNET, with a 133.3% increase in the consensus EPS estimate for the current year over the last 30 days, indicating improved earnings expectations [1] - VNET holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [1] - The Zacks Rank serves as a timing indicator, suggesting that VNET's prospects are beginning to improve, reinforcing the potential for a turnaround [1]