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.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV