Hack into this stock chart. Look at Vasco Data Security (VDSI) (May 29, 2015)
VDSI GILD VDSI
Vasco Data Security ( NASDAQ:VDSI ). This is a company, guess what? It’s in the data security business like Palo Alto etcetera, etcetera. But I’m featuring this in this video because when I see this type of thing so many charts come to mind. The 200-day moving average drifting up, the 50-day moving average had been; you look at the trajectory here for example. The 50-day moving average has been accelerating away from it, which is what happens when stocks break out and are drifting higher, it’s a math thing.
So we got a big breakout here and then since this stock peaked, a little double top and then, oh, a triple top here at $30.00. Since this stock broke down it’s just been trading sideways. Sideways consolidation, I think this is a high base and I don’t mean smoking dope, I mean that this is ultimately going to be seen as a consolidation that gave you a buying opportunity before the stock starts the next move higher.
But what I was saying as far as it kind of reminding me of other patterns, this is what I call, it’s my own description, I used to be a pilot, a private pilot, a touch and go, where the stock had been drifting up and then gradually moves lower, tags a key moving average and it’s really moving average it’s not like trend lines or anything, and then starts to move higher again. That’s what I’m seeing here.
Look at this, look at Gilead ( NASDAQ:GILD ). It was doing the same thing, obviously a totally different company, but you see what I’m talking about? It was a textbook Fitzpatrick touch and go. A move away from the 200-day moving average, a drift back to it and then ultimately, and this thing took forever to develop but finally, hello, hello, finally we’re getting this move here. So I’m looking at Vasco Data Security ( NASDAQ:VDSI ) and I’m really getting the sense that we could see the same type of thing.
So I would watch for a high volume break above 28.00. Now you’re ultimately going to get a test of 30.00, but this is really what’s been happening, huge massive breakout and then we’re getting this sideways consolidation. But when I look at this I see really strong earnings growth. Yes, I’m talking fundamentals here but fundamentals are technical, because we like to see trends. There’s a trend of strong earnings growth and acceleration of revenues or sales. So when I look at this, this is a stock that I want to own, I hope you do to too.
Free Chart