After breaking out of a powerful triangle, which took nearly a year to shape up until the fall of 2014 Validus shares slowed down within a clear flag. The boundary of the flag was breached in early February, which means the stock holds strong upside potential. The stock has virtually corrected down to the flat-breakout level, which is also the bound of the gap. It makes sense to buy into the name at 41.70, with the first target price at 42.20, the closest resistance level
. Should the stock breaks out of this mark, it could gain traction until reaching the target with the strength of the previous strike when breaking out of the triangle towards 45.50. If the overall macroeconomic trend remains unchanged, this target is reachable within the next two or three months.
My forecast participates in the Market Forecaster contest. Follow the link http://s30548462907.whotrades.com/blog/43576735821
to vote for it and help me win the top prize. Thank you.