It seems that August was another turbulent month for ValCom Inc (PINK:VLCO
, VLCO message board
). The company's stock once again made a huge spike above the 50-MA and subsequently crashed back down similar to what happened back in May this year.
VLCO started rising after it announced the release of rare Tina Turner and The Platters singles. After the announcement was made, VLCO pushed through the resistance at $0.07 and made a remarkable jump up till $0.14.
On Aug. 15, however, a sharp decline put a start to a correction period. Since then, VLCO went back to $0.05. Prior to the spike, VLCO had formed a clear upward trend channel, which is basically delineated by the 50-MA.
After the last session, when VLCO surged 23% on a volume of 8.8 million shares, the stock went back into the orbit of its previous trend. Trending indicators such as the MACD and the short-term moving averages are still bearish so it is not certain if VLCO will have the power to surge above the 50-MA in the coming session.
Apart from that, it seems that it is not only the stock of VLCO that has been jolting these days. Turbulence has been shaking the seats of the company's board of directors as well.
An 8-K filed two days ago revealed that the majority of the shareholders had voted for the removal of three members of the Board. However, the majority board members argue that the shareholder meeting was not "duly called".
Nevertheless, while the company is settling the argument, market speculators are preparing for the coming session and the opportunities provided by the chart set up.