Last March 20, 2018 I posted an article "The Power of Women", about how women are sharing the responsibility and power of birth control using condom. But instead of men using the condom, it's the women using it. At that time the price reached $2.16 with Finviz sharing their target at $5.00. Previous to that time around March 5, 2018, VERU had completed Royalty Financing on their FC2 business (the condom business) to avoid dilution of funds. Its stock price closed at $1.43. Today the stock stands at around $2.25, slightly higher than the resistance of $2.2 which had been the triple top resistance line. Creating a VCP (Volatility Contraction Pattern) lines which connects the Lower Highs (LH) and the Higher Lows (HL) forming a triangular flag. As we can see there had been three flag patterns that appeared in increasing size making a triple Fan formation. A breakout on this 3rd fan with price reaching $2.4 and pulling back at $2.2 support line would be a start of a new strong upside potential.
Applying the VCP (Volatility Contraction Pattern) of Mark Minervini he illustrated in his book "Trade Like a Market Wizzard", we can see that the current reading is 22P-3T-122d (22% contraction from its previous high (June 13, 2018) to latest low (Jul 31, 2018). From Sep 27, 2017 up until the latest low (Jul 31, 2018) the latest low is the 3rd Touch of the VCP bottom line. And it had been 122 days since that high of $3.00.
We need to stay close attention of this contraction when it comes around 6% to 5%. For now, it is a waiting game for the sniper on this Stock.
Applying the VCP (Volatility Contraction Pattern) of Mark Minervini he illustrated in his book "Trade Like a Market Wizzard", we can see that the current reading is 22P-3T-122d (22% contraction from its previous high (June 13, 2018) to latest low (Jul 31, 2018). From Sep 27, 2017 up until the latest low (Jul 31, 2018) the latest low is the 3rd Touch of the VCP bottom line. And it had been 122 days since that high of $3.00.
We need to stay close attention of this contraction when it comes around 6% to 5%. For now, it is a waiting game for the sniper on this Stock.
So far the stock had New 55 days High (N55) with volume more than 200% (VP) than the usual volume twice but was hammered when reaching $2.25. If it breaks out and make New 78 days high, then this will be soaring upward.
3 Things we are looking for:
- VCP percentage contraction of around 6% or 5%.
- Breakout on the 3rd Fan VCP with a breakout of the $2.25 resistance
- High Volume of more than 200% and a New 78 day High.
