Vitamin and health product retailer Vitamin Shoppe (VSI) is showing a similar setup right now. Like Microsoft, shares of VSI have spent the last few months consolidating sideways in a price channel that's bounded by horizontal support below and horizontal resistance above shares.
After VSI's climb in 2012, that rectangle trading range gave shareholders a chance to catch their breath and figure out their next move. And this month, it looks like they've figured it out; shares of VSI broke out above $62 resistance last week and have been holding their ground ever since. That signals a buy for traders who've been waiting on the sidelines; buyers are definitively in control of this stock right now.
Just like the buy signal with Microsoft, I'd recommend keeping a tight stop in VSI if you decide to be a buyer here.
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