Here are my few words about the activity of VLNC last week.
The stock consolidated for four days at $7 a share with increasing volume and positive MACD (Moving Average Convergence Divergence). This activity sort of winds the stock up like a rubber band in readyness for an explosive move in one direction or another. In the two short days that followed the move was obviously positive, and the stock quickly rallied to 10 1/4. Of course, that's too quick too soon, and invariably, the stock was going to retract to test its breakout price. Because of the strength of the move, I estimated that the price might retract to about 8 1/2. After allowing a 1/16 for the bid-ask difference, I purchased some today when it touched 8 9/16. It ended up 1/2 (I think) for the day.
If the price breaks $10 with another strong move, then $10 will become the support. Once above $10, any further strong moves will place it in the NASDAQ "Movers & Shakers" table of the Investors Business Daily. This will inevitably bring the stock and the company to the limelight, especially if it earns a nod from William O'Neal.
For a move above $10, I think some news/formal announcements will be required. Presently everything is still based on speculation, and the assumption that a serious purchaser was responsible for last week's big move. My purchase was just to wet my appetite. While volume remains nice and strong, I'll hold. |
