VirTra Systems In The Spotlight, Technical Analysis
Written by Michael Vlaicu Alerts, Videos Feb 3, 2010
VirTra Systems Inc. (OTC:VTSI.pk) has been receiving a lot of praise lately as indicated by the strong bullish volume the last couple of days. Despite this, what goes up must at some point come down — atleast a little bit. Today marks a break in this momentum and thus establishes it as a consolidation period, however, the real question is, what can we expect from this?
About VirTra Systems Inc.
VirTra Systems, Inc. manufactures, markets and sells its immersive virtual reality (IVR) products in two markets, which includes law enforcement and military. The Company offers two versions of its IVR 360-degree high-definition firearms training simulators: the IVR HD for use in marksmanship, conflict resolution, and situational awareness training of law enforcement and security officers, and the IVR 4G, for use in military firearms/marksmanship training, situational awareness, and fourth-generation squad-based training.
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When taking a look at the chart, it is easy to see why some investors who have began their story with this company might be hanging on by a thread right now, but should they really feel this way? The simple answer is, no. Every great company needs a consolidation period to reset technicals, get rid of bag-holders and regain new momentum from future investors. What goes up, must come down, and the cycle is repeated time and time again. As seen from the RSI, it is still technical sound and the stock has not yet reached an overbought state. VTSI also maintains a strong support in the $0.08 to $0.09 region which will not be broken, right now it is being tested simply by a) Market Makers and b) Long-Term Bag-Holders. Furthermore, we take a look at the MACD divergence which should begin to see a paradigm shift in the upcoming days, and thus bringing Stochastics up along with it nicely past the 50 zone, which was the same occurrence that brought the stock up in the previous two massive spikes. This time will be no different, consolidation, slight sideways trading, and a shooting star right after.
This momentum is further confirmed by the many large green volume bars which trump the many red sell bars, thus establishing a long-term up-trend which is perhaps the best news for investors that have recently jumped in on the stock. For nearly a year this stock has been engaged in a tremendous uptrend as indicated by the green line, and nothing should change as consolidation is all too familiar with this stock. Any current investors should use this time to load up on more shares, or wait it out for the bounce back most likely coming on the high volume Monday. One common rule-of-thumb in investing is: Never invest in a stock if you don’t plan on adding on the dips.
Disclosure: Long VTSI
