VIP Sticking to the Trendline
Vimpel Communications (VIP) has been sticking to its trendline which was established back in November. Now VIP sits at support of both the trendline and its 20 day moving average, are higher prices soon to follow?
VIP is a Russian provider of digital and analog wireless voice and data services to some 55 million subscribers. The stock split 5 for 1 back in August and has gone on to over double in price again. Let’s face it, the stock is hot.
VIP Stock Chart, Click to View
What you can see in this VIP stock chart is first the trendline drawn in black of higher lows, and secondly the 20 day moving average (red line) which has served as good support the whole way up.
Moving forward the bulls are buying with the stock trading around $41 betting the trendline will hold. The bears are looking for this trendline to break and the stock to press under $40. If you buy in this range give the stock some room to breath with a stop of 5 - 8%. First price target would be $44ish.
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I’m glad you reminded me about this one. I followed it briefly a few weeks ago, but have been waiting for a pull back. You might have identified the right entry point. I think I’ll play it safer and put a limit in to sell some naked puts at 35. If you redraw your chart as weekly starting in August you see another trend line that shows VIP could come all the way back to the 35 range, maybe 36 if it keeps following the last three weeks’ trend line of lower lows.
i came across this stock a while back and kind of forgot about it.. guess i lost out some good gain
Its been a long morning.. Thanks for giving me something interesting to read