Peter Hristov

ValCom Inc (PINK:VLCO) Bounces Above the 50-MA

by Peter Hristov August 10, 2011
9VLCO_chart.pngValCom Inc (PINK:VLCO, VLCO message board) can attract investors' eye by the configuration that is forming on its stock chart. For about two months now, VLCO has been making higher lows, while keeping a relatively constant resistance level at around $0.06.

This way, a configuration called rising triangle has formed on the chart, a situation generally considered bullish by traders. However, there are certain additional moments on the chart that should also be taken into account.

On the fist place, trading volume has not shown general tendency for increase, which is an important factor watched by many investors for signals of building momentum. On the other hand, the rising 50-MA has now reached a point where it starts to act as a resistance for the stock and it can give an opposite signal if it gets breached.

3VLCO_logo.jpgYesterday, when the company announced that it was going to release rare singles of Tina turner and the Platter, VLCO shares surged 22% to $0.055. The trading volume was 3 million shares, which is slightly above the daily average.

Thus, the stock received a helping impulse at the time when it had to prove itself to the 50-MA. The coming days will show if the technical signals will work out well for the company's stock, or if it is time VLCO took a rest after the 500% climb in the last months.

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