VITARICH CORPORATION (VITA) White Knight has not come to town yet. I would say that the rally last Friday was more than of a speculation. When no stocks was doing extra ordinary, VITA was being ‘played’. Most volume was traded at the top or 1.41. This level got the 8.46% of the total traded volume. This was followed by 1.35 Among the buyers, it was COL and ABACUS who topped the buyers list, BUT they also topped the sellers list. Looking at the historical broker transactions on the month of October, we saw no one who is accumulating this stock. I would like to think they are just doing tsupits. This tells us that this really is an speculative play. It also took me few times to check the chart before realizing we have an Ascending Triangle formation and that the 3 candlesticks which represents the 3 weeks (with the doji on the middle) is actually what we called Return to Breakout.
Return to Breakout: A basic tenet of technical analysis is that resistance turns into support and vice versa. When the horizontal resistance line of the ascending triangle is broken, it turns into support. Sometimes there will be a return to this support level before the move begins in earnest.
This week we will only have 3 trading days. Expect some roller coaster ride on this.