I have caught a lot of heat about this stock. Let me provide some context, I recently started following this stock about a month ago after a follower asked me to take a look at it. I had some huge option swing trades and nailed the levels precisely, until last week. That said, I am bullish this via common from avg Px of $23.12 and long via July $25C's and July $30C's. I took a beating on weekly $26C's last week - full disclosure.
Now, VRX is beyond beaten down and we've seen climactic selling with a secondary test, which was followed by declining volume. This is indicative of lack of supply and accumulation of institutions. Institutions according to recent 13-F filings own ~79% of shares. This is important, because as institutions own a majority of the supply, when demand steps in via news, it marks up significantly.
From a technical perspective. Friday was a 52 week low and right at the bottom of the developing value area ($21.96) . S1 is at $21.83 and the 61.8 fib ext is $21.91. The 50MA is flattening and we see bullish divergences in RSI, Macd, and CCI.
The developing VA shows value up to $66.81. Obviously, it won't happen overnight. A break above $36.78 gives this thing some room to run. Pretty sure the first test will be just above pivot ($30.17) in the not so distant future.
ATR is at lowest level since 5-17-2013, where it saw a huge run up. I use another indicator not available on Tradingview called Market Forecast, which signaled extremely oversold and typically points to a trend reversal. (I posted it Friday evening)
Despite continuing to new 52 week lows macd has been flat and the stock remained in a $2-$3 trading range. We've seen numerous sharps buying OTM calls out to Oct and January.
Everything about this chart points to massive accumulation.
In closing, I've been called everything from a "pumper" to a "fraud" via social media, but I just can't wrap my mind around being short this stock. Good luck all!
Now, VRX is beyond beaten down and we've seen climactic selling with a secondary test, which was followed by declining volume. This is indicative of lack of supply and accumulation of institutions. Institutions according to recent 13-F filings own ~79% of shares. This is important, because as institutions own a majority of the supply, when demand steps in via news, it marks up significantly.
From a technical perspective. Friday was a 52 week low and right at the bottom of the developing value area ($21.96) . S1 is at $21.83 and the 61.8 fib ext is $21.91. The 50MA is flattening and we see bullish divergences in RSI, Macd, and CCI.
The developing VA shows value up to $66.81. Obviously, it won't happen overnight. A break above $36.78 gives this thing some room to run. Pretty sure the first test will be just above pivot ($30.17) in the not so distant future.
ATR is at lowest level since 5-17-2013, where it saw a huge run up. I use another indicator not available on Tradingview called Market Forecast, which signaled extremely oversold and typically points to a trend reversal. (I posted it Friday evening)
Despite continuing to new 52 week lows macd has been flat and the stock remained in a $2-$3 trading range. We've seen numerous sharps buying OTM calls out to Oct and January.
Everything about this chart points to massive accumulation.
In closing, I've been called everything from a "pumper" to a "fraud" via social media, but I just can't wrap my mind around being short this stock. Good luck all!
