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Re: dominik2 post# 1102

Sunday, 07/15/2012 9:06:24 PM

Sunday, July 15, 2012 9:06:24 PM

Post# of 1146
Daily Chart Analysis - Vonage looks as though it could be transitioning here from a Bear to a Bull market. There is a rather crude cup & handle pattern in place (I much prefer trading perfect patterns and this one is not perfect) but, the daily chart does provide quite a nice bullish divergence at the base of the pattern to lend some credibility to it. There is also a bearish divergence to warn of lower prices recently but, if you look at the momentum of the RSI and Stochastics, it appears to me that we may see price momentum slow a bit now and support settle in around the 50 day MA which would be right where you would expect it to be if the price is to continue higher here. I would look for the price to consolidate around $1.80 to $1.85 under oversold conditions and head higher. If the price retreats to and then breaks support at the recent lows around $1.65, that would be reason to consider abandoning the trade. http://stockcharts.com/h-sc/ui?s=VG&p=D&yr=0&mn=6&dy=0&id=p11648566014&a=271968321&listNum=4