Thursday, April 14, 2016

Vince Big Base Breakout Coming

Vince Holding designs, merchandises, and sells fashion brand products in the United States and internationally.

The stock has been a dog ever since coming public a couple of years ago, however, things might be changing here in the short-term. Nothing says 'passing the baton' in the trading world than a breakout from a long base.

I'm always intrigued by huge bases from stocks that are trading near their 52-week low.  A long base that was preceded by a long downtrend usually means that the sellers are no longer in control, they've run out of supply, and or the buyers (new set of stockholders) are now stepping in and taking all the stock they can get from the sellers.  The new shareholders obviously believe that greener pastures lie ahead. VNCE has been trading sideways for roughly 9-months, it is safe to say the buyers and sellers found equilibrium.  At the beginning of the year, the buyers started to take control; that is easy to see with the pattern of higher lows that commenced in February.  Late February VNCE broke out from the top of its trading range ($6.27) and immediately made a 29% move.  Since then, the stock has pulled back and retested and is still retesting the breakout zone.  If the stock can manage to get back and hold above $6.30, it would provide trading speculators a good risk reward zone to pick up some shares and look for a move back to the recent high $8.10.



My opinion and outlook are subject to change as new information comes in. 

Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463.


      

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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1 comment:

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