Recommended Reading

Google Search

Charts courtesy of

Wednesday, June 8, 2011


I posted a weekly chart of VRUS this morning, but even on a daily chart the high, tight flag pattern is obvious. This is a textbook example of the pattern, with a gain from 50 to 110 in less than 3 months, followed by a nearly two month flag, and a high volume breakout today. O'Neil says that this pattern will typically yield an 80-100% gain, but that is when the market is rallying. A severely correcting market, which is what we are smack dab in the middle of now, probably makes this a much riskier trade, but a small position with a stop below 90 might be worth the risk.

No comments:

Google Analytics