Vivinet Solar Inc. (VSLR) was mentioned on Mad Money last night. Prices have rallied from around $3.00 in February and March to reach $6.00 recently which is impressive but are there more gains to come? Let's check the charts and indicators.
In this daily bar chart of VSLR, below, we can see a bottom pattern from September to June and an upside breakout in July. Prices are above the rising 50-day moving average line and the bullish 200-day line too. In late May there is a bullish golden cross as the 50-day average line crossed above the 200-day line. The daily On-Balance-Volume (OBV) line has been moving up from February and tells me that buyers of VSLR have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since March but it is currently in a take profits mode.
In this weekly bar chart of VSLR, below, we see a large base pattern and a weekly close above $6 will be a breakout that could carry prices to the $9 area. Prices are above the rising 40-week moving average line. The weekly OBV line shows a bullish pattern since early 2016. The weekly MACD oscillator is above the zero line and bullish.
In this Point and Figure chart of VSLR, below, we see an upside price target of $7.25 but a trade at $6.50 is likely to generate an $11 price target.
Bottom line strategy: Use a stop below $4.75 and go long on a new high for the move up. Add above $6.50. $7.25 and $11 are my price targets.
