Revenge Designs RVGD displays huge volatility today
Tuesday 22nd of January 2008 06:00:18 PM
I was watching Revenge Designs trading today because it seemed to have a nice setup and a possible break out from .0035 resistance. The chart seemed to hold a lot of promise because in past 2007, RVGD had two previous huge spikes so it has already shown that it has the real ability to get a good rally going.
Also notable is the huge surge in volume during the last 30 days and that happening under the longer term resistance line of .0035. I usually like to see big volume under a longer term resistance line because in some cases it supports the idea that pressure is building up under there and will make the breakout that much better.
Anyway, as far as today’s action goes, it was extremely volatile for RVGD. Make no mistake, volatility in the penny stock markets is pretty much a guarantee, but occasionally you even see it ramped up to a much higher degree than expected. That was definitely the case today.
RVGD made a minor surge today to test the previous near term resistance high of .0034 during the first half of the trading day. But almost immediately upon hitting that level a massive sell off ensued sending RVGD down very hard to an intra day low of .0015. A few seconds after hitting .0015 RVGD rocketed higher like it had just touched it’s toes to a bed of hot coals. The reaction rally send it back up to about .0027 and then we saw it drift down into the close to settle at around .0022.
Can RVGD still make a breakout above .0034 this week ?
That is the ultimate question, and the answer depends a lot on whether or not RVGD can pull a rabbit out of the hat and again find a way to rally and breakout higher similar to the way it did in November 2007, the previous huge spike higher.
If you look closely at the chart you can see that right before the huge November rally higher there was a very severe shakeout that slammed price right down and retraced almost all of the previous 5 days. Was today’s action a repeat setup of what happened in November 2007? We sold off very hard and recovered a good portion of the losses today. The price action does look very similar to the setup in November.
The bottom line is that if the scenario is going to play out again, then I would say we need to see within the next couple of days a resurgence back to .003 and then quick rally higher. If anything less than that happens, RVGD may be dead money for a a good while longer.
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