Hi MJ,
VNWK is a very strong stock:
139.142.147.218
It is now overbought, and has burst through the upper BB rail on big volume. That is generally unstable, and temporary.
VNWK tends to spend a few weeks in overbought territory (stochastics above 80), and the BBs were contracted and needed to be pushed open. Today's candle will accomplish that.
VNWK probably has a bit more upside in it. I say this for a few reasons: first, VNWK tends to spend a few weeks in overbought territory, and during this time, typically rallies a bit more. That said, in the past the BBs have not been blown through as dramatically as today's candle did, suggesting that this time we won't see as much continuation upwards as on past occasions. Another hint that there may be more upside is the magnitude of the MACD histograms, which this time are less than on the previous occasions. This suggests that MACD histograms will continue to rise before VNWK reverses and corrects, and if that happens, we will see further price increase.
Personally, I would not take a long position at this time, but would consider an entry if it corrected back to support ($3.75, then the 20 ema or sma, then $3.50) and showed signs of reversal from oversold territory. If I had a long position, I would take at least partial profits (very likely I'd look to close the entire position), since the chances for a pullback or consolidation are significant at this point.
All IMHO.... Reid, what do you think?
T |
