Thursday, May 31, 2007

Reader Question: RVBD

Walter, who always seems to find great stocks, asked my opinion of RVBD.

There is little to dislike about the stock. It's made a nice run after breaking out of it's base at $32-34, is under heavy accumulation (as evidenced by increase in volume during run), has an uptrending RSI reading and has yet to violate any major resistance points. While this is all great for somebody who is "in", I'm not so sure I'd enter right now.

Today's breakout volume is not great comes after a parabolic run. I usually like to enter breakouts that occur closer to base congestion. If I did decided to enter, I would wait for a pullback to$40 and place a stop under the latest pivot point, which would be $36.

1 comment:

walter said...

thanks for feedback and i agree - fortunately i am already "in"...