Stock Chart Analysis VLNC
Valence Technology, Inc. (Public, NASDAQ:VLNC)
While I've been thinking we are closer to an intermediate bottom then the beginning of another wave down, I am cognizant of the fact that we are in a bear market and most rallies will be shorted. As such, I like to have a list of short plays ready, so that won't have to rush intraday to find a play if I'm wrong about my main thesis.
VLNC is a classic breakdown and retrace back up to the broken support for a retest. It was actually a pretty strong looking stock up until August. It broke down and while it found support at the 200 day sma, the bounce quickly petered out and it fell for 9 straight days. It is now back for a retest of the 200 sma, and after the sharp rally, this looks like a natural place for existing holders to get antsy and sell some shares. If market conditions cooperate, this could make for a nice short trade even if only for a retest of the lows.
Good Trading,
Joey
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You were right - it went down, yet it did not retest lows. I do not think it will.
I didn't mean it would retest right away. But in any case, you may be right. These patterns aren't right 100% although they do work more often then not. There are no guarantees in the markets, which is why we stick to our stops.
Joey