Shares of Vera Bradley Inc. (VRA) rallied sharply in reaction to the company beating fiscal second-quarter consensus expectations for direct revenue, indirect revenue, Pura Vida revenue, gross margin and EPS.
Let's check the charts to see if these gains can continue for the handbag and accessories retailer.
In the daily bar chart VRA, below, we can see that the shares have been basing around the $4 level since March. Prices made a rally attempt in May and June but retreated back to the $4 area until late August when a stronger rally developed. Prices have rallied above the declining 200-day moving average line and are above the rising 50-day moving average line.
The On-Balance-Volume (OBV) line was quietly stable from March and suddenly surged sharply higher as buyers quickly became aggressive. The Moving Average Convergence Divergence (MACD) oscillator just crossed above the zero line for a buy signal.